UOB Bank FY 2011 Full-year Financial Performance

UOB released its full year results today. Its net profit reduced by 4.1 per cent from 2010 to $2.33 billion. Though its total income increased, but its net profit was impacted by higher operating expenses and higher impairment charges due to loans growth. Share of associates’ profits were lower also.

Return on Equity declined by 1.8 percentage points to 11.1 per cent. Non-performing loan rate (NPL) was 0.1 percentage point lower at 1.4 per cent.

FY 2011 FY2010 Change
Net Profit $2.33b $2.42b -4.1%
ROE 11.1% 12.9% -1.8% pt
NPL ratio 1.4% 1.5% -0.1% pt
EPS $1.43 $1.52 -9 cents
Dividend (Total) 60 cents 70 cents – 10 cents
Net Asset Value per share $13.23 $12.80 +3.4%

Earnings per share declined 9 cents to $1.43. UOB proposed total dividend of 60 cents, which is the same as in 2010 except that no special dividend was recommended for 2011 (10 cents special dividend in 2010). Dividend payout ratio of 42 per cent for 2011 is lower than 2010 at 46 per cent (inclusive of special dividend).

Net asset value per share improved by 3.4 per cent to $13.23. Based on share price today (23 Feb 2012) of $18.40, price to book ratio is 1.39.

Of the three local banks of DBS, OCBC and UOB, DBS outperformed the other two banks on the basis of strongest net profit for the whole year. OCBC and UOB were quite comparable, with UOB slightly ahead of OCBC.

Some more information on UOB:

FY 2011 FY2010 Change
Total revenue $5.7b $5.5b +3.5%
Net Interest income $3.6b $3.5b +4.1%
Non-interest income $2.02b $1.97b +2.3%
Net Interest margin 1.92% 2.09% -17 basis points
Capital Adequacy – Tier 1 13.5% 14.0%
Capital Adequacy – Total 16.7% 17.5%

Share price for 2011:

Highest $21.00
Lowest $14.42
Average $17.71
Last Done $15.27

Price to NAV:  1.33 times

Copyright © 2012, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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