FY 2024 Full-Year Financial Results Media Briefing

Good morning everyone and welcome to UB's fourth quarter, 2024 results media briefing. Today we have with us our deputy chairman and CEO, Mr. V.H. Hong, who will give a broad overview of how our franchise has performed and the operating landscape. We also have our group CFO, Mr. Li Wifi. Wifi will go into more details on the financials and business performance from the quarter and for the full year. After both presentations, we'll be taking questions from the media. Now I'd like to invite you to get us started. Mr. Li Wifi. Thank you. Thank you everyone. Good morning. Thank you for joining us today. With ongoing geopolitical tensions and tariffs, the outlook for the year remains uncertain.

We are closely monitoring developments. So far, our CNYN continues to be sealed. Mega trends such as supply change diversifications, digitalization and the green economy are driving investments into the region. CNYN is also moving towards closer cooperation. With recent developments such as your whole Singapore special economic zone and integrated cross-border retail payment system and the shape of our group. All this will help boost intra-ASEAN connectivity and growth. And we enforce the region's position

as a key player in the global economy. In 2024, we achieved a good set of results. Full year net profit through 6% to a new high of 6 billion versus 2023 5.7 billion. We are pleased that we are making good progress in reshaping our income divers. In wholesale banking, our platforms and sector specific solutions enable us to better finance cross-border businesses. Leading to higher fee income and CASA group.

4% just to be year on year on loans and trade related fees. 16% year on year in CASA balance. Cross-border income and transaction banking now contribute a higher proportion of wholesale banking. Also, customer related trading and investment income saw a robust growth of 20%. In retail banking, our city acquisition has helped us scale our business in ASEAN. Cross-credit fees grew 18% for the year. Our newly reorganized private bank

along with privileged banking are driving high network AUM. Our total AUM up 8% to 190 billion and well-management income which grew strongly by 30%. We are making good progress in shaping our businesses towards drivers that are recurring in nature and less sensitive to rate cycles. This may take time, but we are happy with the results so far and we will be laser focused on accelerating growth in this area. On the cost front, we are stepping up efforts to enhance productivity.

Our cost income ratio for 2024 was 42.5%. Reflecting our cost structure as a regional commotion. In 2025, city related integration costs were roll off significantly. We expect CIR to be the low 40s in the next few years. ASEAN quality is sound and our book continue to be resilient. The uptick in specific provision last quarter was in line with our expectations and prudent policies and catered for by management overlay set aside earlier. Total credit costs remain within our guide

25 to 30 basis points last year. While we stay vigilant, we are gaining traction in reshaping our loan portfolio to more trade related exposures and diversifying our revenue base to more non-loan income. Given our business model and projections this year, we expect total credit costs again to remain 25 to 30 basis points. Funding base is also getting stronger. We solely gain in transaction floats from both retail customer business cash management services. Capital positions are at healthy level with excess CT1 even on the basis for fully loaded basis.

The board has recommended a final dividend of 92 cents for ordinary share, bringing our full year dividend to 1.8 per share. We present a payout ratio of about 50%. This year marks the OB90 anniversary. For our shareholders, we are pleased to announce a 3 billion package to return surplus capital over three years. This comprises a special dividend of 50 cents per share payout over two tranches this year. And a 2 billion share buyback program