1H 2025 Interim Financial Results Media Briefing

Good morning, everyone, and thank you for coming in a little earlier. Welcome to our second quarter, 2025 results media briefing. Today we have with us our deputy chairman and group CEO, Mr. Wee Chong and our group CFO, Mr. Leong Yong-chi. As usual, Mr. Wee will begin by giving a broad overview of how our franchise has done and the operating landscape we are in. And then Mr. Leong will then go into more details on the financials and business performances. After both presentations, we will take questions from the media. I now would like to invite the CEO to get us going, Mr. Wee. Thank you. Good morning. Thank you for joining us today. The high core environment remains fluid. With geopolitical tensions and shift in global trade in a multi-fold world.

Amid uncertainties, regional economies are holding firm. ASEAN, Baung Nhau Yimiu, shows resilient growth. ASEAN fundamentals remain strong with competitive cost structure, improving infrastructures and deepening trade linkages. This position the region will adapt and thrive in a complex global landscape. Amid global uncertainties, our core business and financial performance health steady. Operating profit for the first half year rose 3% from the same period last year driven by strong fee growth. After taking a conservative approach to increase our reserve, net profit came

in at 2.8 billion down 3% year-on-year. Net interest income was flat as long growth offset the impact of declining interest rate. Margin compressed in line with the external environment. But we continue to proactively optimise our cost of funds and rebalance our portfolio. Fee income shows strong momentum up 11% led by loan and well fees and robust treasury income supported by healthy time flows. This performance reflects the strength of our diversified business order. We continue to pace our costs, keeping it flat year-on-year.

We remain vigilant on asset quality. Our overall loan portfolio remains sound with MPL steady at 1.6%. Total credit costs were higher at 34 basis points, including the pre-emptive general allowance set aside to ensure healthy provision bubbles. Our balance sheet remains strong with CET1 ratio at 15.3% and robust liquidity ratios. The board has recommended an interim dividend of 85 cents per share, representing a payout ratio of 50%. We also paid the second tranche of the 50 cents special dividend

to mark UOB's 19th anniversary. For the second half of 2025, while the external environment remains challenging, we see pockets of opportunity. Governments across the region are also stepping up to push businesses through the transition. This includes recently announced 100,000 SME grants in Singapore and fiscal and sector-specific measures in other countries to keep growth on track. As a long-term player, we remain committed to our clients, including SMEs, standing by them through economic cycles, supporting them with working capital,

cross-border financing, and digital tools to help them scale efficiently. Our strategy is clear and consistent, focused on ASEAN long-term potential. The region offers relative political stability, resilient fiscal positions, and growing economies. Its competitiveness as an FDI destination is supported by well-connected infrastructure and a young, outwardly mobile population. In a multi-polar world order, opportunities arise with regional integration and trade diversification. At the same time, mega-trends, including digital and green economies,

will continue to drive investment and generate growth. We are well positioned with our extensive ASEAN footprint, deep connectivity to China and global market, and a diversified plant base. On the wholesale front, we are seeing strong traction across multiple revenue drivers, rising car car balances, growing regional trade flows, and supply chain finance, robust trade and loan fees, strong treasury income from active client flows. We are intensifying our focus on emerging opportunities, digital and green economies, and infrastructure investment, aligned with our ASEAN integration agenda.