United Overseas Bank Limited: SWOT Analysis & Company Profile by BusinessReview

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Business Review’s United Overseas Bank Limited contains a company overview, key facts, locations and subsidiaries, news and events as well as a SWOT analysis of the company.

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									United Overseas Bank Limited

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United Overseas Bank Limited: SWOT
Analysis & Company Profile


Reference code: BRFS110CP10-Q4

Published: Oct 2010




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United Overseas Bank Limited - SWOT Profile                                         Page 1
United Overseas Bank Limited

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United Overseas Bank Limited - Company Overview

United Overseas Bank Limited (UOB) is one of the market leaders in the credit card business and the private residential
home loan business in Singapore. It is also a key player in loans to small and medium enterprises. The company offers a
comprehensive range of financial services, including personal financial services, private banking, commercial and
corporate banking. It also offers investment banking, corporate finance, capital market activities, treasury services, futures
broking, asset management, venture capital management, general insurance, and life assurance and stock broking
services. These services are offered through its global network of over 500 offices in 19 countries and territories in Asia
Pacific, Western Europe and North America. UOB is headquartered in Singapore.


Financial Performance

The bank reported interest income of (Singapore Dollars) SGD 5,159.26 million during the fiscal year ended December
2009, a decrease of 24.74% from 2008. Its revenues recorded a declining compound annual rate of 16.34%, during the
period, 2007-2009. Moreover, during the fiscal year 2009, the company’s net profit margin was 36.860% as against a net
profit margin of 28.253% during the fiscal year 2008.




United Overseas Bank Limited - Key Facts

United Overseas Bank Limited, Key Facts

                                  80 Raffles Place, Singapore, ,
                                                                    Ticker Symbol, Stock           U11 (Singapore Exchange
Corporate Address:
                                  048624, Singapore                 Exchange                       Securities Trading)



Telephone                         + 65 65339898                     No. of Employees               20,551



Fax                               + 65 65342334                     Financial Year End             December



URL                               www.uobgroup.com                  Revenue (in SGD Million)       5,159.26



Industry                          Financial Services                Revenue (in USD Million)       3,558.11


                                  Australia, Brunei Darussalam, China, Hong Kong Special Administrative Region of China, Indonesia,
Locations                         Japan, Malaysia, Myanmar, Philippines, Republic of Korea, Singapore, Taiwan, Thailand, Vietnam,
                                  France, United Kingdom, Canada, United States
Source: Annual Report, Company Website, Primary and Secondary Research




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United Overseas Bank Limited - SWOT Profile                                                                                Page 2
United Overseas Bank Limited

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United Overseas Bank Limited - Business Description

United Overseas Bank Limited (UOB) is a Singapore-based bank with a strong presence in the Asia-Pacific region. It
offers a range of financial services with a network of over 500 offices in 19 countries and territories in North America,
Western Europe and Asia Pacific. The services provided by the company includes private banking, personal financial
services, trust services, investment banking, corporate finance, commercial and corporate banking. It also includes capital
market activities, treasury, asset management, futures broking, venture capital management, stock broking, life assurance
and general insurance. It also has interests in travel and leasing. UOB employs approximately 20551 people.

Its business activities are classified into four reportable segments namely, Personal Financial Services, Institutional
Financial Services, Global Markets and Investment Management and Others.

UOB’s Personal Financial Services segment comprised of three sub-segments: Consumer Banking, Privilege Banking
and Private Banking. Under Consumer Banking sub-segment, UOB offers a diverse range of products and services,
including deposits, loans, investments, credit and debit cards and life assurance products to the mass individual
customers. The company through its Privilege Banking sub-segment serves the wealthy and affluent customers by
offering a wide range of financial services, including wealth management, offshore and restricted products such as
structured notes, funds of hedge funds, and high net worth insurance plans. Under Private Banking sub-segment, it offers
a range of personal financial services and consultation for the accredited investors and high net worth individuals. During
the fiscal year 2009, the segment contributed USD 844 million towards the company’s total profit before tax, a decrease of
2.8% over 2008.

Institutional Financial Services segment of the company comprises of six sub-segments namely, Alternative Investments,
Commercial Banking, Corporate Banking, Corporate Finance, Debt Capital Markets and Venture Management. Alternative
Investments sub-segment invests in third-party funds on behalf of the company. The company, through its Commercial
Banking and Corporate Banking sub-segments, offers a full range of products and services, including trade finance,
deposits, lending, asset finance, current accounts, structured finance, cash management and cross-border payments.
Commercial Banking sub-segment serves the small and medium enterprises. Under Corporate Banking, UOB serves
large local corporations, government-linked companies and agencies, as well as non-bank financial institutions. Corporate
Finance sub-segment is engaged in offering a range of services, including corporate advisory services; lead managing
and underwriting equity offerings. UOB, under Debt Capital Markets, principally focuses on solution-based structures to
financing requirements of its clients in structuring, underwriting and arranging syndicated loans for general corporate
needs, leveraged buy-outs, project and structured finance, and underwriting and lead managing bond issues. Through
Venture Management sub-segment, UOB supervises, advises and invests in private equity funds on behalf of third-party
investors. During the fiscal year 2009, the segment contributed USD 986 million towards the company’s total profit before
tax, a decrease of 4.6% over 2008.

The company, through its Global Markets and Investment Management segment provides extensive range of treasury
products and services, which include foreign exchange, money market, fixed income, derivatives, margin trading, futures
broking, gold products. It also offers a wide range of structured products. In addition, UOB is involved in asset
management, proprietary investment activities and management of excess liquidity and capital funds. It is a dominant
player in Singapore dollar treasury instruments and further it also offers banknote services in the region. During the fiscal
year 2009, the segment contributed USD 945 million towards the company’s total profit before tax, an increase of 36.2%
over 2008.

Its other segment principally comprised of property-related activities, insurance businesses and income and expenses not
attributable to other business segments. The other segment witnessed a loss of USD 469 million in 2009, as compared to
loss of USD 111 million in 2008.

The company’s operations are organized under six Geographical segments, which include Singapore, Malaysia, Thailand,
Indonesia, Greater China and Others. In fiscal year 2009, UOB generated 65.2% of its total operating profit from
Singapore, 10.6% from Malaysia, 7.7% from Thailand, 6.7% from Indonesia, 3.7% from Greater China and 6.2% from
Other.




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United Overseas Bank Limited - SWOT Profile                                                                         Page 3
United Overseas Bank Limited

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United Overseas Bank Limited - Major Products and Services

United Overseas Bank Limited, together with its subsidiaries, provides a range of financial products and services. The key
products and services of the company include the following:

United Overseas Bank Limited, Major Products and Services
Services:

Personal Financial Services

Private Banking

Trust Services

Commercial and Corporate Banking

Investment Banking

Corporate Finance

Capital Market Activities

Treasury Services

Future Broking

Asset Management

Venture Capital Management

General Insurance

Life Assurance

Stockbroking Services
Source: Annual Report, Company Website, Primary and Secondary Research




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United Overseas Bank Limited - SWOT Profile                                                                       Page 4
United Overseas Bank Limited

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United Overseas Bank Limited - History

United Overseas Bank Limited, History

    Year                Event type                                                 Description


                                                UOB announced that its subsidiaries, UOB.Com Pte. Ltd. and FEB Realty Company
   2009      Others
                                                Pte Ltd commenced voluntary liquidation.


   2008      Acquisitions/Mergers/Takeovers UOB increased its stake in 
								
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