Top Down Strategy and Large Cap Stock Picks - the DBS Vickers ...
Top Down Strategy and Large Cap Stock Picks - the DBS Vickers ...
Top Down Strategy and Large Cap Stock Picks - the DBS Vickers ...
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<strong>Stock</strong> Profile: UOB<br />
Regional Equity <strong>Strategy</strong> Q4 2007<br />
Income Statement (S$ m) Balance Sheet (S$ m)<br />
FY Dec 2006A 2007F 2008F 2009F FY Dec 2006A 2007F 2008F 2009F<br />
Net Interest Income 2,710 2,962 3,217 3,436 Cash/Bank Balance 16,301 17,768 19,012 20,343<br />
Non-Interest Income 2,127 1,715 1,933 2,189 Government Securities 9,429 9,806 10,198 10,606<br />
Operating Income 4,837 4,677 5,150 5,626 Inter Bank Assets 29,004 25,535 27,771 30,254<br />
Operating Expenses (1,749) (1,927) (2,130) (2,343) Total Net Loans & Advs. 76,875 85,118 92,570 100,846<br />
Pre-provision Profit 3,088 2,750 3,021 3,283 Investment 18,090 17,526 19,037 20,713<br />
Provisions (181) (205) (235) (260) Associates 1,184 1,401 1,640 1,902<br />
Associates 271 217 239 262 Fixed Assets 1,857 1,797 1,731 1,656<br />
Exceptionals 0 0 0 0 Goodwill 4,293 4,293 4,293 4,293<br />
Pre-tax Profit 3,178 2,761 3,024 3,285 O<strong>the</strong>r Assets 4,278 4,256 4,629 5,042<br />
Taxation (553) (497) (544) (591) Total Assets 161,312 167,502 180,881 195,657<br />
Minority Interests (55) (28) (30) (33) Customer Deposits 95,552 104,151 111,442 119,243<br />
Preference Dividend 0 0 0 0 Inter Bank Deposits 33,449 34,033 38,401 43,504<br />
Net Profit 2,570 2,237 2,450 2,661 Debts/Borrowings 6,596 6,596 6,596 6,596<br />
Net Profit bef Except 2,570 2,237 2,450 2,661 O<strong>the</strong>rs 8,539 4,290 4,635 5,013<br />
Minorities 385 413 443 476<br />
Shareholders' Funds 16,791 18,019 19,363 20,824<br />
Total Liab& S/H’s Funds 161,312 167,502 180,881 195,657<br />
Profitability & Efficiency Ratios (%) Financial Stability Measures (%)<br />
FY Dec 2006A 2007F 2008F 2009F FY Dec 2006A 2007F 2008F 2009F<br />
Margins, Costs &<br />
Balance Sheet Structure<br />
Yld. ffi On i Earnings Assets 5.12 5.11 5.01 4.95 Loan-to-Deposit Ratio 83.1 83.9 84.9 86.0<br />
Avg Cost Of Funds 3.22 3.16 3.10 3.08 Net Loans / Total Assets 47.7 50.8 51.2 51.5<br />
Spread 1.90 1.94 1.90 1.87 Investment / Total Assets 11.2 10.5 10.5 10.6<br />
Net Interest Margin 1.99 2.08 2.09 2.06 Cust . Dep./Int. Bear. Liab. 70.5 71.9 71.2 70.4<br />
Cost-to-Income Ratio 36.2 41.2 41.3 41.6 Interbank Dep / Int. Bear. 24.7 23.5 24.5 25.7<br />
Employees ( Year End) 20,102 22,112 24,323 26,756 Asset Quality<br />
Effective Tax Rate 17.4 18.0 18.0 18.0 NPL / Total Gross Loans 4.0 4.0 4.0 4.0<br />
Business Mix NPL / Total Assets 2.0 2.1 2.1 2.1<br />
Net Int. Inc / Opg Inc. 56.0 63.3 62.5 61.1 <strong>Cap</strong>ital Strength<br />
Non-Int. Inc / Opg inc. 44.0 36.7 37.5 38.9 Total CAR 16.3 16.7 16.8 16.6<br />
Fee Inc / Opg Income 20.7 23.4 23.4 23.7 Tier-1 CAR 11.0 12.2 12.4 12.6<br />
Oth Non-Int Inc/Opg Inc 23.2 13.3 14.1 15.2 Growth<br />
Profitability Total Net Loans 14 11 9 9<br />
ROAE Pre Ex. 12.5 13.5 13.7 13.8 Customer Deposits 12 9 7 7<br />
ROAE 17.1 13.5 13.7 13.8<br />
ROA Pre Ex. 1.7 1.4 1.3 1.4<br />
ROA 1.7 1.4 1.3 1.4<br />
Valuation Graph : PE<br />
19.0<br />
17.0<br />
15.0<br />
13.0<br />
11.0<br />
9.0<br />
7.0<br />
2003 2004 2005 2006 2007<br />
Price & Price Relative to Index<br />
S$<br />
Relative Index<br />
26.00<br />
187<br />
24.00<br />
167<br />
22.00<br />
20.00<br />
147<br />
18.00<br />
127<br />
16.00<br />
107<br />
14.00<br />
12.00<br />
87<br />
10.00<br />
67<br />
2003 2004 2005 2006 2007<br />
UOB (LHS) Relative STI INDEX (RHS)<br />
Source: Company, <strong>DBS</strong> <strong>Vickers</strong><br />
51
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