United Overseas Bank (U11) investor relations material

Business overview and strategy

• Founded in 1935, operates 430 branches in 19 markets, with a strong Southeast Asia presence and diversified business segments.

• Maintains leading positions in retail, wholesale, and global markets, with significant awards and market share in Singapore and ASEAN.

• Proven management stability and track record, with successful acquisitions and organic growth, including recent Citi consumer banking integration.

• Integrated regional platform enables operational efficiency, risk management, and seamless customer service across ASEAN and Greater China.

• Strategic focus on digital, AI, and sustainability, with robust initiatives in responsible financing and net zero commitments.

Financial performance and capital position

• 1H26 net profit reached $2.9b, with 2Q26 at $1.5b, supported by strong wealth and trade momentum.

• Net interest income was stable despite margin compression, as asset growth offset lower NIM; 2026 NIM guidance at 1.75%-1.80%.

• CET1 ratio at 15.4% post-dividend, leverage ratio at 6.8%, and payout ratio maintained at ~50%, with ongoing share buyback (40% of $2b completed).

• Cost-to-income ratio at 44.9%, with disciplined cost growth and continued investment in technology and talent.

• Strong liquidity and funding, with LCR at 159%, NSFR at 114%, and loan/deposit ratio at 81.7%.

Asset quality and risk management

• NPL ratio at 1.6% in 2Q26, with higher NPA formation due to a Greater China real estate account; coverage remains robust.

• Provision coverage is adequate, with performing loans coverage at 0.9% and NPA coverage at 88% (306% after collateral).

• Actively derisking real estate exposure in Greater China and US, with REH loans in these regions under 8% of group loans.

• US and Greater China exposures are closely monitored, with rising NPL ratios but high unsecured NPA coverage.

• Singapore mortgage portfolio remains low risk, with strong legal protections, low LTVs, and stable cover pool quality.