Annual Report 2017
Total income showed strong momentum and rose 10% to $8.85 billion, led by new highs in both net interest income and fee and commission income.
Net interest income rose 11% to $5.53 billion from a year ago on the back of higher net interest margin and healthy loan growth of 5%. Net interest margin increased 6 basis points to 1.77%, mainly attributed to higher yields from interbank balances and securities, a function of both our measured efforts in deploying excess funds into higher-yielding assets and a rising interest rate environment.
Non-interest income increased 8% to $3.32 billion. Fee and commission income registered a robust growth of 12% to $2.16 billion, driven by strong performances in wealth management, fund management and credit card businesses. Higher net gains from the disposal of investment securities also contributed to the increase in other non-interest income to $1.16 billion.
Net Profit After Tax
The Group reported net earnings of $3.39 billion for the full year of 2017, 9% higher than a year ago.
Net customer loans grew 5% from a year ago to $232 billion in 2017. The growth was broad-based across most territories and industries.
Customer deposits grew 7% to $273 billion, led by growth in US dollar deposits.
The Group’s funding position continues to be strong with a healthy loan-to-deposit ratio at 85.1% in 2017.
Net Customer Loans
- 1.7% pt
Shareholders’ Equity/Return on Equity
Shareholders’ equity increased 12% from a year ago to $36.9 billion as at 31 December 2017, due to higher retained earnings, issuance of US$650 million perpetual capital securities and shareholders’ participation in the scrip dividend scheme.
Return on equity remained at 10.2% for 2017.
Return on Equity
Total Assets/Return on Assets
The Group’s total assets grew 5% to $359 billion in 2017 mainly on higher loan volume.
Return on assets for 2017 increased to 0.98%.
Return on Assets
+ 0.03% pt
Capital Adequacy Ratio (CAR)
As at 31 December 2017, the Group’s strong capital position remained well above the MAS minimum requirements with Common Equity Tier 1 and Total CAR at 15.1% and 18.7% respectively. The Group’s leverage ratio stood at 8.0% as at 31 December 2017, above the minimum requirement of 3%.
+ 2.1% pt
+ 2.5% pt
Loans By Geography
Gross loans grew 5% year-on-year to $236 billion as at 31 December 2017.
Singapore, which accounted for 54% of the Group loan base, reported 2% growth year-on-year to reach $128 billion while regional countries contributed a strong growth of 9%.
Overseas Profit Before Tax Contribution
The Group’s net profit before tax was 11% higher at $4.21 billion.
Overseas profit contribution was higher at 40.8% in 2017 compared with 37.4% a year ago.
+ 3.4% pt
Relates to the amount attributable to equity holders of the Bank.
Included a special dividend of 5 cents in 2013 and 2014 respectively and 20 cents in 2017. 2015 included UOB’s 80ᵗʰ Anniversary dividend of 20 cents.
Economic Value of Our Contributions
In the course of conducting our business, we create direct and indirect economic value for our stakeholders and contribute to the development of local economies.