United Overseas Bank (U11) Investor update summary

Financial performance and capital management

• Maintained strong capital and liquidity positions with CET1 ratio at 15.3%, LDR at 81.9%, and AA credit ratings.

• Return on equity at 11.5% for Q1, slightly lower due to margin compression from falling Singapore rates.

• Preemptive general allowance of SGD 615 million made to strengthen provision buffers against macro uncertainties, especially in US and Greater China commercial real estate.

• Ongoing SGD 2 billion share buyback program, 35% completed, with a 50% dividend payout policy.

• Net profit reached a record SGD 6 billion in 2024, with profits remaining resilient through economic cycles.

Group overview and business strength

• Founded in 1935, operates in 19 markets with 430 branches, focusing on Southeast Asia and maintaining a strong regional presence.

• Recognized as a leading retail and SME bank in Singapore and Asia-Pacific, with awards for best bank and strong market share.

• Maintains high credit ratings (Aa1/AA-/AA-) and robust liquidity and funding ratios.

Business strategy and growth drivers

• Completed integration of Citigroup Consumer Banking in four ASEAN markets, expanding retail customer base to 8.5 million.

• Retail banking focuses on affluent and upper mass affluent segments, with strong growth in cards and wealth management.

• Wholesale banking aims to be the leading cross-border trade bank in ASEAN, with transaction banking now contributing about 50% of wholesale income.

• Diversified loan portfolio by industry and geography, with Singapore as the anchor market and selective expansion in ASEAN and Greater China.

• Consistent profitability and resilience through economic cycles, supported by prudent risk management and diversified funding.