Banking Convenience. Anytime, Anywhere.

141 Pages·2001·1.09 MB·English

ANNUAL REPORT
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HEAD OFFICE
80 Raffles Place
UOB Plaza
Singapore 048624
Telephone [phone]
Facsimile 65-534 2334
Website www.uobgroup.com
CORPORATE INFORMATION
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BOARD OF DIRECTORS COMPENSATION COMMITTEE
Wee Cho Yaw (Chairman) Wee Cho Yaw (Chairman)
Wee Ee Cheong Ho Sim Guan
Koh Beng Seng (appointed on 26 May 2000) Dr Cham Tao Soon
Ho Sim Guan
Banking Convenience. Anytime, Anywhere.
Ernest Wong Yuen Weng SECRETARY
To meet the challenges of a constantly changing marketplace, our strategy calls Prof Lim Chong Yah (resigned on 5 December 2000) Vivien Chan
for a relentless focus on our customers, offering them relevant and competitive Wong Meng Meng
products that are most attractive and convenient to them. Our ‘Touch, Click and John C Dean Jr SHARE REGISTRAR
Mortar’ strategy gives our customers the freedom to access their finances from Sim Wong Hoo Lim Associates (Pte) Ltd
the Internet or from the traditional branch, ATM and Call Centre, wherever they Philip Yeo Liat Kok (appointed on 26 May 2000) 10 Collyer Quay
are, whenever they want. Dr Cham Tao Soon (appointed on 4 January 2001) #19-08 Ocean Building
Singapore 049315
EXECUTIVE COMMITTEE Telephone: [phone]
Wee Cho Yaw (Chairman) Facsimile: 65-536 1360
Wee Ee Cheong
Koh Beng Seng AUDITORS
Ho Sim Guan PricewaterhouseCoopers
8 Cross Street
C O N T E N T S AUDIT COMMITTEE #17-00 PWC Building
Ernest Wong Yuen Weng (Chairman) Singapore 048424
OUR MISSION 1 Prof Lim Chong Yah (resigned on 5 December 2000) Partner-in-charge: Dr Chew Kia Ngee
Philip Yeo Liat Kok
BRIEF PROFILE 2
Dr Cham Tao Soon REGISTERED OFFICE
PERFORMANCE IN BRIEF 3
80 Raffles Place
CHAIRMAN’S STATEMENT 4
NOMINATING COMMITTEE UOB Plaza
FINANCIAL HIGHLIGHTS 8
Wong Meng Meng (Chairman) Singapore 048624
BOARD OF DIRECTORS 12
Wee Cho Yaw Telephone: [phone]
PRINCIPAL OFFICERS 14
Koh Beng Seng Facsimile: 65-536 7712
CORPORATE GOVERNANCE 16
John C Dean Jr Cable: TYEHUABANK
2000 IN REVIEW 20
Sim Wong Hoo Telex: RS 21539 TYEHUA
GROUP FINANCIAL REVIEW (CONSOLIDATED) 29 SWIFT: UOVBSGSG
FINANCIAL STATEMENTS 61 Website: www.uobgroup.com
SUBSIDIARIES 112
MAJOR ASSOCIATES 117
INVESTOR REFERENCE 119
OUR INTERNATIONAL NETWORK 128
NOTICE OF ANNUAL GENERAL MEETING 135
All figures in this Annual Report are in Singapore dollars unless otherwise specified. Design and Production by Citigate Su Yeang Design Pte Ltd • Printing by UIC Printing and Packaging Pte Ltd
a vision
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To be a premier bank in the
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Asia-Pacific region, committed
to providing quality products
and excellent customer service.
277 OFFICES IN
SINGAPORE HONG KONG S.A.R. TOKYO
(65 offices) (5 offices)
SYDNEY
PHILIPPINES GUANGZHOU
(86 offices) LONDON
SHANGHAI
THAILAND PARIS
(64 offices) XIAMEN
NEW YORK
MALAYSIA BEIJING
LOS ANGELES
(27 offices)
YANGON
SUNNYVALE
INDONESIA
(10 offices) HO CHI MINH CITY (SILICON VALLEY)
TAIPEI VANCOUVER
SEOUL
UNITED OVERSEAS BANK 1
a universal
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bank
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United Overseas Bank (UOB) is a leading bank in Singapore with an
international network that comprises 277 offices in
17 countries in the Asia-Pacific region, Europe and North America.
Its banking subsidiaries in Singapore comprise Far Eastern Bank and
Industrial & Commercial Bank, while its banking subsidiaries in the
region are United Overseas Bank (Malaysia), PT Bank UOB Indonesia,
UOB Radanasin Bank in Thailand and United Overseas Bank
Philippines.
UOB provides a wide range of financial services through its global
network of branches, offices and subsidiaries: commercial and
corporate banking, personal financial services, private banking, trust
services, treasury services, asset management, corporate finance,
capital market activities, venture capital management, proprietary
investments, general insurance and life assurance. It also offers
stockbroking services through its associate, UOB-Kay Hian Holdings.
Through its other subsidiaries, and other associates (principally the
United Overseas Land Group and Haw Par Group), UOB also has
diversified interests in travel, leasing, property development, hotel
management, healthcare, manufacturing and general trading.
UOB is rated among the world’s top banks by Moody’s Investors
Service, receiving B+ for Bank Financial Strength, and Aa2 and
Prime-1 for long-term and short-term deposits respectively.
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a good year
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The Group
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2000 1999 Increase/
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Profit For The Year ($'000)
Profit before taxation 1,185,876 1,026,217 15.6%
Net profit after tax 912,895 760,214 20.1%
Selected Balance Sheet Items
As At Year-End ($'000)
Customer loans (net of provisions) 30,045,283 27,259,114 10.2%
Customer deposits 43,405,504 40,728,491 6.6%
Total assets 66,324,052 56,773,946 16.8%
Shareholders’ funds 6,769,523 6,191,047 9.3%
Financial Ratios
Basic earnings per share (cents) 86.8 72.4 19.9%
Return on average shareholders’ funds (%) 14.1 12.6 1.5% points
Return on average total assets (%) 1.5 1.4 0.1% point
Expense to income ratio (%) 39.4 32.5 6.9% points
Dividend rates (%)
– Interim and final 40.0 20.0 20.0% points
– Special bonus (tax exempt) – 25.0 –25.0% points
Net tangible asset backing per share ($) 6.43 5.89 9.2%
Capital Adequacy Ratio – BIS (%)
– Tier 1 capital 17.1 18.6 –1.5% points
– Total capital 19.8 21.7 –1.9% points
UNITED OVERSEAS BANK 3
steady growth
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PERFORMANCE IN 2000
Singapore's GDP in 2000 grew by an impressive 9.9% against
a projected growth of 4.5% to 6.5%, powered by strong electronic
exports. Riding on the back of stronger than expected growth in
the Singapore economy, the Group and the Bank achieved
creditable performance in 2000.
Wee Cho Yaw
Chairman & The UOB Group posted an After-Tax Profit of $912.9 million,
Chief Executive Officer
representing a rise of 20.1% over the $760.2 million achieved in
1999. After-Tax Profit for UOB (excluding extraordinary items of
$110.6 million) improved by 16.4% to $630.2 million, compared
with the previous year's of $541.5 million (excluding extraordinary
items of $772.8 million). Group return on average shareholders’
funds (ROE) improved from 12.6% to 14.1% during the year.
Profit growth was largely contributed by consumer and commercial
banking, asset management and venture capital; offset by losses
incurred by our two newly acquired subsidiaries, UOB Radanasin
Bank and United Overseas Bank Philippines. It was also helped by
lower provisions for Non-Performing Loans. Specific and general
provisions declined from $253.5 million in 1999 to $93.4 million
in 2000.
The Board of Directors proposes that $400 million be transferred
to reserves, and recommends a final dividend of 25% less 24.5%
income tax. Together with the interim dividend of 15%, the total
dividend for 2000 is 40%.
The Group's Singapore subsidiaries also achieved satisfactory
growth because of the improved economy. Far Eastern Bank's
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After-Tax Profit improved from $8.7 million to Leveraging on the experience and expertise of UOB
$11.0 million, while Industrial & Commercial Bank's Singapore, our Thai subsidiary, UOB Radanasin Bank
After-Tax Profit rose from $14.9 million (excluding made successful forays into the consumer banking
extraordinary items of $111.6 million) to $61.7 million arena. It launched an attractive housing loan package
(excluding extraordinary items of $12.0 million). United in April and the UOB VISA Card in September. Our
Overseas Insurance posted an After-Tax Profit of Indonesian subsidiary changed its name from P T
$10.3 million, compared with $7.4 million in 1999. United Overseas Bank Bali to PT Bank UOB Indonesia
and opened a branch in Bali, its seventh in the country.
As for our regional banking subsidiaries, United United Overseas Bank (Malaysia) also enhanced its
Overseas Bank (Malaysia) netted an After-Tax Profit personal financial services through phonebanking
of $93.4 million (1999: $97.7 million), PT Bank and Internet payment services and facilities. We were
UOB Indonesia achieved an After-Tax Profit of also active in corporate banking, and were involved
$10.4 million (1999: $9.3 million), while the Group’s with several successful capital restructuring exercises.
share of losses of UOB Radanasin Bank and United
Overseas Bank Philippines were $38.5 million and The merger of UOB Securities and Kay Hian Holdings
$19.3 million respectively. became effective in October 2000. We are now
finalising the sale of UOB’s regional stockbroking
CORPORATE DEVELOPMENTS IN 2000 subsidiaries to the new company, UOB Kay-Hian
Holdings.
The Group's investments in IT infrastructure to
enhance our Internet banking services continued to The recent misconduct of five staff members in
bear fruit. More than a quarter of our customers has handling two Initial Public Offerings of shares, in which
logged on to www.uobgroup.com to conduct their UOB Asia (the Group's merchant banking subsidiary)
financial transactions online. An increasing number acted as manager, resulted in UOB Asia being fined
of customers are also using our Call Centre facility. under the Securities Industries Act. The Bank does
Our e-Treasury service, allowing foreign exchange not condone such improper conduct. All five staff
transactions to be executed around the clock, has members involved have resigned. Management has
also proven to be popular with our corporate taken steps to prevent future similar occurrences.
customers.
We are confident that we will continue to meet
shareholders’ expectations with our business
strategies.
UNITED OVERSEAS BANK 5
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Arising from this incident, we appointed on the huge market offered by China, following its
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of the operations of UOB Asia. The review has
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been completed and management has accepted This year will be challenging for Singapore and
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I would like to reiterate that good corporate economic adversity, there will also be business
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H governance has always been a guiding principle of opportunities. Hence, we are confident that we will
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the UOB Group. We expect our staff to observe continue to meet shareholders' expectations with
high standards of professionalism and integrity in our business strategies.
their work.
Firstly, we will seek to further increase our market
2001 PROSPECTS AND STRATEGIES share in Singapore by continuing to provide innovative
products and quality services to our customers,
Against the backdrop of an economic slowdown in accessible anywhere and anytime. This customer-
the United States, the official estimate for Singapore's focussed approach forms the backbone of our
GDP growth this year is between 5% and 7%. corporate structure and directs all our business
Unless there is a significant improvement in the activities. The Group's human and IT resources will
American economy, we believe that growth will be be channelled to meeting the financial needs and
at the lower end of the range. A prolonged aspirations of our large customer base.
slowdown in the United States will adversely affect
the regional economies, some of which have not Secondly, we will continue to transfer our expertise
fully recovered from the financial crisis of 1997. and experience to our regional banking subsidiaries.
More importantly, we intend to maximise our strong
The regional outlook is further marred by the regional network to finance trade and investments
economic inertia in Japan and socio-political in the Asia-Pacific area. In particular, we plan to
uncertainties in South-East Asia. Both factors will grow our commercial banking, trade financing,
have a negative influence on potential foreign corporate finance, treasury and investment banking
investments, with investors already casting their eyes activities especially in ASEAN and Greater China.
uncer tain
times ahead
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We are confident that this will further help us meet Director, Dr Cham Tao Soon, Professor & President
our target of deriving 50% of our profit from our of the Nanyang Technological University. I am
overseas operations by 2010. confident that the Bank will benefit greatly from
the wide experiences of these distinguished
Thirdly, high standards of corporate governance and gentlemen.
sound risk management practices will continue to
rank high on our list of priorities. With globalisation In October 2000, the Group lost the services of its
and the rapid advancement of technology, the financial President, Mr Ernest Wong Yuen Weng, who decided
market is facing rapid changes. Under these to opt for early retirement. Mr Wong, who had been
circumstances, prudent management of risk is crucial with the Bank for 29 years, agreed to continue to be
to ensure the continued financial soundness of the on the Board of UOB. In December 2000, the Board
Group, and to safeguard and protect the interest of accepted, with regret, the resignation of Director,
our shareholders. Prof Lim Chong Yah. I take this opportunity to thank
Prof Lim for his contributions to the Bank and
Finally, recognising the importance of human resources, the Group.
we have stepped up our drive to expand our talent
pool to meet the ever-changing needs of a diverse My deep appreciation also goes to the other Directors
customer base and to achieve our goal to become a who have been unstinting in giving their time and
strong regional bank. An effective and equitable wise counsel to the Bank, as well as management
human resource management system is in place to and staff members who have helped the Group to
attract and retain the best and brightest within the put up a creditable performance in the past year.
Group.
BOARD DIRECTORS
In May 2000, the Board was further strengthened
with the appointment of two new Directors, namely,
Mr Koh Beng Seng and Mr Philip Yeo Liat Kok. Wee Cho Yaw
Mr Koh, who was previously Deputy Managing Chairman & Chief Executive Officer
Director of the Monetary Authority of Singapore, March 2001
also joined the Group as Deputy President. Mr Yeo
is currently the Chairman of the National Science &
Technology Board and Co-Chairman of the Economic
Development Board. He has played a pioneering role
in the development of Singapore’s manufacturing
sector. In January 2001, we welcomed another new
UNITED OVERSEAS BANK 7
building
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shareholder value
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A GROUP ASSETS GROUP CUSTOMER DEPOSITS
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2000: $66,324 million + 16.8% 2000: $43,406 million + 6.6%
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F 1999: $56,774 million 1999: $40,728 million
80000 45000
70000 40000
60000 35000
50000 30000
n n
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milli 40000 milli 25000
$ $
30000 20000
20000 15000
10000 10000
1996 1997 1998 1999 2000 1996 1997 1998 1999 2000
$ 45,807 49,362 50,789* 56,774* 66,324 $ 31,099 35,635 36,492 40,728 43,406
US$ 32,731 29,443 30,587* 34,068* 38,293 US$ 22,222 21,256 21,976 24,439 25,061
GROUP CUSTOMER LOANS GROUP LOANS/CUSTOMER
DEPOSITS RATIO
2000: $30,045 million + 10.2%
1999: $27,259 million 2000: 69.2% + 2.3% points
1999: 66.9%
33000 110
30000 100
27000
90
24000
on % 80
milli 21000
$ 70
18000
15000 60
12000 50
1996 1997 1998 1999 2000 1996 1997 1998 1999 2000
$ 27,459 29,770 27,653 27,259 30,045 88.3% 83.5% 75.8% 66.9% 69.2%
US$ 19,621 17,757 16,653 16,357 17,347
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