United Overseas Bank : UOB Group 1H19/2Q19 - Group Financial Report

To: All Shareholders

The Board of Directors of United Overseas Bank Limited wishes to make the following announcement:

Unaudited Financial Results for the First Half/Second Quarter Ended 30 June 2019

Details of the financial results are in the accompanying Group Financial Report.

Dividends and Distributions for the Second Quarter Ended 30 June 2019

Ordinary share dividend

An interim one-tier tax-exempt dividend of 55 cents (2Q18: 50 cents) per ordinary share has been declared in respect of the financial year ending 31 December 2019. The dividend will be paid in cash on 27 August 2019. The UOB scrip dividend scheme will be suspended.

Notice is hereby given that the Share Transfer Books and Register of Members of the Bank will be closed on 19 August 2019, for determing shareholders' entitlements to the interim dividend. Registrable transfers received by the Bank's Registrar, Boardroom Corporate & Advisory Services Pte Ltd at 50 Raffles Place, Singapore Land Tower #32-01, Singapore 048623, up to 5.00 pm on 16 August 2019 will be registered for the interim dividend. In respect of ordinary shares in securities accounts with The Central Depository (Pte) Limited ("CDP"), entitlements to the interim dividend will be computed based on the shareholdings position after settlement of all trades on 16 August 2019 ("Record Date"). The interim dividend will be paid by the Bank to CDP which will, in turn, distribute the dividend to holders of the securities accounts.

Distributions on perpetual capital securities

On 23 April 2019, a semi-annual distribution at an annual rate of 3.875% totalling US$13 million was paid on the Bank's US$650 million 3.875% non-cumulative non-convertible perpetual capital securities for the period from 19 October 2018 up to, but excluding 19 April 2019.

On 21 May 2019, a semi-annual distribution at an annual rate of 4.00% totalling S$15 million was paid on the Bank's S$750 million 4.00% non-cumulative non-convertible perpetual capital securities for the period from 18 November 2018 up to, but excluding 18 May 2019.

On 21 May 2019, a semi-annual distribution at an annual rate of 4.75% totalling S$12 million was paid on the Bank's S$500 million 4.75% non-cumulative non-convertible perpetual capital securities for the period from 19 November 2018 up to, but excluding 19 May 2019.

Interested Person Transactions

The Bank has not obtained a general mandate from shareholders for Interested Person Transactions.

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Confirmation by Directors

The Board of Directors hereby confirms that, to the best of its knowledge, nothing has come to its attention which may render the unaudited financial results of the Group for the first half/second quarter ended 30 June 2019 to be false or misleading in any material aspect.

Undertakings from Directors and Executive Officers

The Bank has procured undertakings in the form set out in Appendix 7.7 of the Listing Manual from all its directors and executive officers pursuant to Rule 720(1) of the Listing Manual.

BY ORDER OF THE BOARD

UNITED OVERSEAS BANK LIMITED

Ms Joyce Sia

Secretary

Dated this 2nd day of August 2019

The results are also available atwww.UOBgroup.com

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Group Financial Report

For the First Half/Second Quarter ended 30 June 2019

United Overseas Bank Limited Incorporated in the Republic of Singapore

Contents

Page

• 2 Financial Highlights

• 4 Performance Review

• 6 Net Interest Income

• 8 Non-Interest Income

• 9 Operating Expenses

• 10 Allowances for Credit and Other Losses

• 11 Customer Loans

• 12 Non-Performing Assets

• 14 Customer Deposits

• 14 Debts Issued

• 15 Shareholders' Equity

• 15 Changes in Issued Shares of the Bank

• 16 Performance by Business Segment

• 20 Performance by Geographical Segment

• 23 Capital Adequacy and Leverage Ratios

Appendix

• 1 Consolidated Income Statement

• 2 Consolidated Statement of Comprehensive Income

• 3 Consolidated Balance Sheet

• 4 Consolidated Statement of Changes in Equity

• 5 Consolidated Cash Flow Statement

• 6 Balance Sheet of the Bank

• 7 Statement of Changes in Equity of the Bank

Notes

• 1 The financial statements are presented in Singapore Dollars.

• 2 Certain comparative figures have been restated to conform with current period's presentation.

• 3 Certain figures in this report may not add up to the respective totals due to rounding.

• 4 Amounts less than $500,000 in absolute term are shown as "0".

• 5 Non-impaired assets refer to Stage 1 and Stage 2 assets under SFRS(I) 9.

• 6 Impaired assets refer to Stage 3 and purchased or originated credit-impaired assets under SFRS(I) 9.

Abbrevation "1H19" and "1H18" denote first half of 2019 and 2018 respectively. "1Q19" denotes first quarter of 2019.

"2Q19" and "2Q18" denote second quarter of 2019 and 2018 respectively. "NM" denotes not meaningful.

"NA" denotes not applicable.

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Financial Highlights

1H19	1H18	+/(-)	2Q19	2Q18	+/(-)	1Q19	+/(-)
%	%	%
Selected income statement items ($m)
Net interest income	3,241	3,012	8	1,653	1,542	7	1,587	4
Net fee and commission income	1,005	1,015	(1)	527	498	6	479	10
Other non-interest income	743	546	36	403	302	33	340	18
Total income	4,989	4,573	9	2,583	2,342	10	2,406	7
Less: Operating expenses	2,203	2,009	10	1,129	1,022	11	1,073	5
Operating profit	2,787	2,564	9	1,453	1,320	10	1,333	9
Less: Allowances for credit and other losses	144	170	(15)	51	90	(44)	93	(45)
Add: Share of profit of associates and joint ventures	17	81	(79)	(0)	52	(>100)	17	(>100)
Net profit before tax	2,660	2,476	7	1,403	1,282	9	1,257	12
Less: Tax and non-controlling interests	440	421	5	235	205	14	205	14
Net profit after tax 1	2,219	2,055	8	1,168	1,077	8	1,052	11
Selected balance sheet items ($m)
Net customer loans	269,820	246,392	10	269,820	246,392	10	266,515	1
Customer deposits	304,792	287,515	6	304,792	287,515	6	307,701	(1)
Total assets	406,382	384,263	6	406,382	384,263	6	400,467	1
Shareholders' equity 1	39,033	37,660	4	39,033	37,660	4	38,989	0
Key financial ratios (%)
Net interest margin 2	1.80	1.83	1.81	1.83	1.79
Non-interest income/Total income	35.0	34.1	36.0	34.2	34.0
Cost/Income ratio	44.1	43.9	43.7	43.6	44.6
Overseas profit before tax contribution	39.1	41.5	37.5	40.0	40.9
Credit costs on loans (bp) 2
Non-impaired	1	1	(3)	3	6
Impaired	12	11	11	11	13
Total	13	12	8	13	19
NPL ratio 3	1.5	1.7	1.5	1.7	1.5
Notes:

• 1 Relate to amount attributable to equity holders of the Bank.

• 2 Computed on an annualised basis.

• 3 Refer to non-performing loans as a percentage of gross customer loans.

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