FY 2025 Full-Year Financial Results Media Briefing

All right, good morning, everyone. Welcome to our full year 2025 results media briefing. Today we have with us our deputy chairman, group CEO, Mr. Lee Chong, and our group CFO, Mr. Leong Yong-chi. As usual, Mr. Lee will begin first by giving a broad overview of how our franchise has performed, the operating landscape we are operating in, and then Mr. Leong will then go into more details on the financials and business performances. After both presentations, we'll be taking questions from the media. So I would now like to invite CEO to get us going. Mr. Lee Chong. Good morning, happy year of the house. Thank you for joining us today. Well, as we enter 2026, the global environment continue to remain very fluid. No political

tensions, ongoing shift in supply chains, and evolving trade and carry. However, operating and production in our core markets have remained broadly supportive. Across ASEAN, momentum towards deeper regional integration is building up. We look at trade, capital flows, and cross-border investment continue to expand, reinforcing the region role as a key growth engine. This creates opportunities, well-positioned regional

bank like UB support clients across ASEAN. Now again, this background, we deliver a resilient full-year operating profit of 7.7 billion in 2025, 4% down. Our diversified business model remains support strength. Net interest margins, moderated as weight decline, but strong fee momentum across wholesale and retail businesses help to offset the impact, lifting our full-year fee income to a record high. On a quarter-on-quarter basis,

trends were positive. Net interest income increased 4%. Margin rose to 1.84% as we lowered funding costs. Net free income was up 2%, but expenses remain less. On the asset quality front, following our portfolio review in the third quarter, we proactively strengthened our provisioned profit. Credit trends improved in the fourth quarter and are moving in the right direction, with MTR ratio low at 1.5% and total credit cost at 19 basis points. Our balance sheets remain strong with higher CET1 ratio and 15.1%.

A robust liquidity ratio, the board has recommended a final dividend of 71 cents for ordinary share, bringing our full-year dividend to 1.56 per share. This represents a payout ratio of around 50%. In determining the final dividend, we excluded the pre-emptive provisions of $615 billion recognised in the third quarter last year. In addition to our regular dividends, we also returned excess capital to shareholders through a special dividend of 50 cents per share.

Pay over two tranches during 2025. We remain committed to our capital return plan announced last year, ongoing to 2027. Our diversified income stream help ensure earnings stay resilient, even in uncertain conditions. And we see promising momentum in our ASEAN strategy. We see increasing contribution from our ASEAN IV markets across both wholesale and retail business. In fact, just for the information, if you add the ASEAN IV total income is up 5%.

First, the group total income down 3%. So the ASEAN is actually positively trending up. Now, let me talk a little bit about the wholesale banking. It's also delivered a solid growth in trade, transaction related activities and deposit growth. For trade, I think 2024, we generated 36 billion, 2025, 45 billion. Actually, growth of 26% year-on-year. Global markets also benefited from active client hedging, amid market volatility.

Customer related treasury income hit a record high. Retail banking delivered healthy growth across cut buildings, up 6% year-on-year, CASA, up 12%, and high network AUM, up 6%, as we deepen customer relationship across the region. Our wealth business, our wealth franchise continue to scale. We net new money in flow, lifting AUM to 201 p.m. And the invested AUM mix continue with steady increase. Our digital wealth momentum,

this is dealing with the massive low market, actually, it remains very, very strong. We sell more than double year-on-year. That is actually applied through our tomorrow apps. Just to tell you the volume, I think for 2024, we generated 1.57 billion. For last year, we generated 3.84 billion, up by 144%. That is true, our digital platform. Now, looking ahead, we expect the region growth to continue to be powered by structured trends, including digitalization, infrastructure, investments, and deepening regional innovation.