UOB (United Overseas Bank)

[kbl]

Good evening everyone



UOB Group Nine Months 2014 Earnings Rose 10% to S$2.5 billion





SINGAPORE, 30 October 2014 – The UOB Group ("Group") reported net earnings of S$2.46 billion for the first nine months of 2014 ("9M14"). The increase of 10.2% from the nine months of 2013 ("9M13") was contributed by a broad-based increase in operating income which rose 12.6% to S$5.61 billion.

For the third quarter of 2014 ("3Q14"), net earnings grew 7.2% over the second quarter of 2014 ("2Q14") to a new high of S$866 million. This was 18.7% higher when compared with the third quarter of 2013 ("3Q13").

Gross loans registered steady growth of 11.0% year-on-year to reach S$196 billion. The Group continued to exercise balance sheet discipline, recognising the need for a strong and stable funding base to ensure sustainable asset growth. Consequently, the Group intensified its deposit gathering efforts this quarter which, coupled with a more moderate increase in loans, resulted in a lower loan-to-deposit ratio of 85.8%. Besides enhancing its deposits base, the Group also tapped on alternative sources of funding this quarter, leveraging its strong credit ratings to optimise funding costs and to diversify funding mix.



Third quarter 2014 earnings

3Q14 versus 3Q13

The Group delivered 3Q14 earnings of S$866 million, an increase of 18.7% from 3Q13, led by double-digit growth in both net interest income and non-interest income.

Net interest income rose 10.5% from 3Q13 to S$1.16 billion in 3Q14, driven by higher average loan volume in Singapore and the regional countries. Net interest margin was stable at 1.71%.

Non-interest income for 3Q14 grew 32.1% from a year ago to S$816 million. Fee and commission income rose 16.8% to S$475 million in 3Q14 with strong contributions from fund management, wealth management, investment banking as well as loan-related businesses. This was further backed by higher trading and investment income on increased treasury customer flow income and net trading income as a result of favourable market conditions.

The Group recorded S$800 million of expenses in 3Q14, 11.9% higher from a year ago due to higher staff costs and revenue-related expenses. Total impairment charges were higher at S$162 million due to a few specific non-performing loan accounts in Thailand and Indonesia.



3Q14 versus 2Q14

Compared with 2Q14, net earnings increased 7.2% driven by higher contributions from both net interest income and fee income.

Net interest income was 2.7% higher quarter-on-quarter, mainly supported by loan growth. Strong contributions from fund management, wealth management, investment banking as well as loan-related businesses drove fee and commission income up by 15.8%.

Total expenses increased marginally by 1.6% from 2Q14, while total impairment charges were 8.4% higher mainly from collective impairment set aside for loan growth.



CEO’s statement

Mr Wee Ee Cheong, UOB Group’s Deputy Chairman and Chief Executive Officer, said, "We achieved a good set of results, with our continued discipline in balance sheet management and investment in fee-generating capabilities.

"Ensuring a strong funding base remains a key focus to sustain the Bank’s growth. Besides strengthening our deposit base, we tapped on alternative sources of funding, such as our EMTN programme, to diversify our funding mix and optimise our funding costs. Our recent US$500 million and A$300 million senior unsecured debt issuances were well received by investors.

"The recent award of a branch banking licence in Myanmar reinforces our commitment to the region and our investments in serving our customers’ needs."



http://infopub.sgx.com/FileOpen/3Q14News...eID=321096



<vested-oldpot>

[Tiggerbee]

Would be interesting to know which high end residential project in Singapore contributed to the impairment charge.

I noticed that there is an alarming trend in the NPL ratio for Indonesia. It had increased to 3.5% in Q3 2014. Is this just specific to UOB's Indonesia business only or a country wide issue?

(Not vested)

[greengiraffe]

http://www.businesstimes.com.sg/banking-...y-pays-off

UOB's S-E Asia strategy pays off
By
Siow Li Senlisen@sph.com.sg @SiowLiSenBT
BT_20141112_LSUOB12_1362320.jpg Mr Wee says that more of UOB's customers are seeking opportunities in Myanmar because of its large population and untapped resources.
12 Nov5:50 AM
Singapore

UNITED Overseas Bank's (UOB) South-east Asia strategy is paying off as the region's strong economic fundamentals attract more investments and increasing intra-regional trade flows.

Unlike its bigger rivals which have bought banks in Hong Kong and Taiwan, UOB has opted to

[pianist]

seems like lippo side not so honest?

Wednesday, Jan 07, 2015

United Overseas Bank (UOB) has launched a $181 million suit against a subsidiary of Indonesian giant Lippo Group and seven individuals, claiming they conspired to get inflated housing loans.

The loans were for the purchase of 38 condominiums at the high-end Marina Collection in Sentosa - which was developed by Lippo Marina Collection (LMC). Launched for sale in 2007, each condo at the 124-unit development costs an average of $6 million.

But out of the 38 units financed by UOB, 37 have defaulted.

The bank alleges that LMC and the other defendants failed to inform it of "very substantial" discounts of between 22 and 34 per cent given to the buyers. That meant that the buyers paid a lot less for the units than what was indicated on the loan forms.

The loans were therefore not just in breach of Monetary Authority of Singapore rules, but were also in excess of what the buyers actually had to pay for the 99-year leasehold units.

UOB says it gave out the loans after Lippo's lawyers confirmed that the buyers had paid the remainder of the purchase price - but this was untrue. The remainder was instead set off against discounts or "furniture rebates".

In addition, UOB alleges that many of the buyers were fronts and did not have the financial means to service the housing loans.

Instead, the real buyers were five people who had links with the two property agents involved in the alleged scam - ERA housing agent Goh Buck Lim and freelance housing agent Aurellia Adrianus Ho.

UOB alleges that sums ranging from $200,000 to $1.2 million were transferred between bank accounts of the "buyers" and several defendants.

This was to give the bank the impression that whoever was applying for a loan had at least $200,000 in their UOB accounts - one of the criteria for the loan to be granted.

According to UOB, one of the so-called buyers admitted to being paid $100,000 to act as a proxy.

LMC denies being part of any conspiracy to cause loss to UOB and will vigorously defend the claims made against it.

In its defence, LMC says that the loans were a matter solely between the buyers and UOB, and that it had no knowledge of any alleged misrepresentation of the purchase price. It added that the bank should have done its own independent checks.

The developer also said it only dealt with the buyers through Mr Goh. It was the agent who asked if LMC could give a discount in the form of furniture rebates.

LMC agreed to give rebates of between 25 and 34 per cent to promote the sale of units in the development, adding that this was a "fairly common sales and marketing strategy". LMC says it was not aware of Mr Goh or any of the buyers concealing the rebates from UOB.

The bank is represented by Tan Kok Quan Partnership and LMC by Premier Law. The other defendants are defended by Straits Law.

elena@sph.com.sg

UOB says it gave out the loans after Lippo's lawyers confirmed that the buyers had paid the remainder of the purchase price - but this was untrue. The remainder was instead set off against discounts or "furniture rebates".

In addition, UOB alleges that many of the buyers were fronts and did not have the financial means to service the housing loans.

Instead, the real buyers were five people who had links with the two property agents involved in the alleged scam - ERA housing agent Goh Buck Lim and freelance housing agent Aurellia Adrianus Ho.

UOB alleges that sums ranging from $200,000 to $1.2 million were transferred between bank accounts of the "buyers" and several defendants.

This was to give the bank the impression that whoever was applying for a loan had at least $200,000 in their UOB accounts - one of the criteria for the loan to be granted.

According to UOB, one of the so-called buyers admitted to being paid $100,000 to act as a proxy.

LMC denies being part of any conspiracy to cause loss to UOB and will vigorously defend the claims made against it.

In its defence, LMC says that the loans were a matter solely between the buyers and UOB, and that it had no knowledge of any alleged misrepresentation of the purchase price. It added that the bank should have done its own independent checks.

The developer also said it only dealt with the buyers through Mr Goh. It was the agent who asked if LMC could give a discount in the form of furniture rebates.

LMC agreed to give rebates of between 25 and 34 per cent to promote the sale of units in the development, adding that this was a "fairly common sales and marketing strategy". LMC says it was not aware of Mr Goh or any of the buyers concealing the rebates from UOB.

The bank is represented by Tan Kok Quan Partnership and LMC by Premier Law. The other defendants are defended by Straits Law.

[CityFarmer]

More on the OUB/Lippo Group case. IMO, it is more of a business dispute, than a fraud...

(not vested in OUB)

Case of $2-million furniture vouchers grips Singapore property market

SINGAPORE (Jan 22): Perks used by property firms in Singapore to entice buyers of luxury apartments are under scrutiny after a bank sued a developer for allegedly conspiring with borrowers to inflate about $182 million of home loans.

With Singapore's real estate market on the slide, developers regularly try and court potential home buyers by offering incentives ranging from small cash rebates to discounts on cars, rather than cutting the sales price.

United Overseas Bank ( Financial Dashboard) says a unit of Indonesia's Lippo Group took this practice to an extreme by giving buyers at a development in the wealthy enclave of Sentosa Cove furniture vouchers worth as much as $2.4 million for each flat they bought.

Buyers are meant to disclose such incentives when applying for a loan, but UOB claims it granted mortgages, worth an average of $4.8 million each, on 38 flats in the development unaware of the discounts.

Now 37 of those 38 mortgages have defaulted, and the loans are estimated to have been worth far more than the actual purchase prices of the apartments.

The case is raising concerns that other banks may have granted mortgages on other properties, unaware that the buyers have received similarly generous incentives.

"All the market-watchers are definitely paying attention to this lawsuit because it will set a precedent to how banks can be protected in case of a property market collapse," said Christine Li, director of research at consultancy OrangeTee.
...
http://www.theedgemarkets.com/sg/article...rty-market

[CityFarmer]

It is always positive for insider buying...

UOB’s Wee Cho Yaw buys shares of own bank worth $6.16 million

http://www.theedgemarkets.com/sg/article...16-million

(not vested)

[greengiraffe]

http://infopub.sgx.com/FileOpen/UOB-A201...eID=360811

Who will benefit from who...

[CityFarmer]

UOB gets into venture capital market. IIRC, OCBC has similar initiative, but not as JV, but funded directly...

UOB and Temasek unit in proposed JV to tap US$2.2 bil venture debt market

SINGAPORE (July 21): United Overseas Bank (UOB) ( Financial Dashboard) has entered into a proposed joint venture (JV) with a wholly owned subsidiary of state investment firm Temasek to tap the venture debt market in China, India and Southeast Asia.

Venture debt is a type of debt financing provided to emerging venture-capital backed companies to accelerate their business growth.

The potential market size of the three markets is an estimated US$2.2 billion ($3.01 billion), says UOB, citing an EY report.

UOB says the JV will provide up to US$500 million in venture debt loans over the next five years. It will target high growth and innovative start-up companies operating in sectors, such as technology, consumer, healthcare, and clean technology.
...
http://www.theedgemarkets.com/sg/article...ebt-market

[kbl]

Good The TGIF Morning Everyone.

Yes UOB Q2 is result out too.

wow...35cts dividend.

http://infopub.sgx.com/FileOpen/2Q15News...eID=362622

<vested-oldpot><not a call to buy or sell>

[mulyc]

Poor compared to the other two banks, unfortunately.