Uob Ar2011 PDF

UNITED OVERSEAS BANK LIMITED
Annual Report 2011
I
Contents
2 About United Overseas Bank Limited

4 Our Awards & Accolades in 2011
5 5-Year Group Financial Summary
6 Financial Highlights
8 Chairmans Statement
10 Deputy Chairman & CEOs Report
14 Board of Directors
20 Principal Officers
24 2011 in Review
34 UOB in the Community
37 Corporate Governance
44 Capital Management
46 Risk Management
57 Human Resource
60 Pillar 3 Disclosure
68 Management Discussion Analysis
84 Financial Statements
161 Investor Reference
162 UOB Share Price and Turnover
163 Statistics of Shareholdings
166 Five-Year Ordinary Share Capital Summary
167 Our International Network
170 Notice of Annual General Meeting
Proxy Form
Corporate Information
All figures in this Annual Report are in Singapore dollars unless otherwise specified.
Sweet Rambutans by Georgette Chen
Oil on canvas
This painting by Georgette Chen is one of the most acclaimed

pieces in UOBs art collection. The Group started its collection in
the 1970s as a way to support the local arts scene. Through this
programme, UOB has collected more than 1,500 artworks which
are displayed at the Groups offices worldwide.
As UOB is acknowledged as one of the pioneer banks in Singapore,

so too is Chen recognised as a forerunner of the visual arts scene
in the country. The rambutan fruit is a signature element of Chens
still-life paintings. Chen who is known for her Post-Impressionist
style has blended western and eastern elements in this artwork.
Chen has forged a reputation for her portraits, landscape and

still-life paintings. She was conferred the Cultural Medallion in 1982.
A national arts scholarship has been established in her name.
UNITED OVERSEAS BANK LIMITED 1

About United Overseas Bank Limited
77 years of strength and growth

United Overseas Bank Limited (UOB) was incorporated in Singapore on 6 August 1935 as the
United Chinese Bank. Founded by Datuk Wee Kheng Chiang, the Bank catered mainly to the Fujian
community in its early years. In 1965, the Bank changed its name to United Overseas Bank to reflect
its ambition to become a premier bank in the Asia Pacific region.
Over the past 77 years, UOB has grown through a series of strategic acquisitions and organic growth.
UOBs major banking subsidiaries in the region now include United Overseas Bank (Malaysia),
United Overseas Bank (Thai), PT Bank UOB Indonesia and United Overseas Bank (China).
UOBs portfolio also includes Far Eastern Bank.
Today, UOB has a global network of more than 500 branches and offices in 19 countries and territories
in Asia Pacific, Western Europe and North America.
UOB provides a wide range of financial services through its global network including personal
financial services, wealth management, private banking, commercial and corporate banking,
investment banking, corporate finance, capital market activities, treasury services, futures broking,
asset management, venture capital management, insurance and stockbroking services. UOB also
has diversified interests in travel and property management.
In Singapore, UOB is a market leader in the credit card and private residential home loans businesses.
It is also a key player in loans to small and medium enterprises. Its fund management arm, UOB Asset
Management, is one of Singapores most awarded fund managers with a growing regional presence.
UOB is rated among the worlds top banks, with a rating of Aa1 from Moodys and AA- from
Standard & Poors respectively.
UOB plays an active role in the community, focusing its corporate responsibility efforts on the arts,
promoting education and helping children. For three decades, UOB has organised the annual
UOB Painting Of The Year Competition which promotes the works of budding Asian artists.
UOB also encourages its employees across the region to be involved in its corporate responsibility
programme through regular volunteer activities. This includes UOBs Heartbeat Run/Walk which is
held in Singapore, Indonesia, Malaysia and Thailand.
For more information, please visit www.UOBGroup.com.
2 UNITED OVERSEAS BANK LIMITED

About United Overseas Bank Limited
Our extensive network of more than

500 branches and offices in
19 countries and territories worldwide
WESTERN EUROPE ASIA PACIFIC NORTH AMERICA

1 France 75 Singapore 14 China 3 Taiwan 1 Philippines 1 Canada
1 United Kingdom 214 Indonesia 6 Hong Kong 2 Japan 1 South Korea 3 USA
156 Thailand 3 Australia 1 India 1 Vietnam
47 Malaysia 3 Brunei 1 Myanmar

Our Awards & Accolades in 2011
Alpha Southeast Asia Community Chest Awards

Most Innovative Deal/Innovative Islamic Deal of the Year Special Events Platinum Award
in Southeast Asia
Global Finance:
Best Structured Loan Deal of the Year in Southeast Asia
Best Developed Market Banks
Asia Asset Management Best Bank in Singapore
Best of the Best Awards

Best Retail House (Singapore)
Islamic Finance News
Deals of the Year Awards
AsianInvestor IPO Deal of the Year
Investment Performance Awards Real Estate Deal of the Year

Best Onshore Fund House (Singapore)
National Arts Council
Asia Pacific Loan Market Association Distinguished Patron of the Arts Award
Asia Pacific Syndicated Loan Awards
Syndicated Corporate Deal of the Year SPRING Singapore
Syndicated Deal of the Year Singapore Quality Class Star Award
American Society for Training The Asian Banker

and Development Excellence in Retail Financial Services Awards
BEST Award Best Retail Bank in Singapore
Best SME Banking
Asiamoney Awards
Best Local Cash Management Bank The Asset
in Singapore (Small Corporates) Triple A Regional Deal Awards
Best Syndicated Loan
Top 2 Best Foreign Cash Management Bank
in Thailand (Small Corporates) Triple A Transaction Banking Awards
Rising Star Cash Management Bank in Thailand
Association of Banks in Singapore Rising Star Trade Finance Bank in Thailand
SPRING Excellent Service Awards (EXSA)
ABS Service Excellence Champion Award Triple A Transaction Banking Awards
317 Star Awards Rising Star Cash Management Bank (Malaysia)
221 Gold Awards
156 Silver Awards

Five-Year Group Financial Summary
2007 2008 2009 2010 1 2011
Selected income statement items ($ million)

Total income 4,872 5,250 5,405 5,507 5,699
Total expenses 2,018 2,050 2,074 2,258 2,450
Operating profit 2,854 3,200 3,331 3,249 3,248
2
Net profit after tax 2,109 1,937 1,902 2,426 2,327
Selected balance sheet items ($ million)

Total assets 174,950 182,941 185,578 213,778 236,958
Customer loans (net) 92,669 99,840 99,201 112,440 141,191
Customer deposits 106,967 118,171 121,502 142,299 169,460
Shareholders equity 2 17,329 15,573 18,986 21,473 22,967
Financial indicators (%)

Return on average ordinary shareholders equity 12.6 12.2 11.9 12.9 11.1
Return on average total assets 1.24 1.07 1.06 1.24 1.06
Expense/Income ratio 41.4 39.0 38.4 41.0 43.0
Non-performing loans ratio 1.8 2.0 2.2 1.8 1.4
3
Capital adequacy ratios (CAR)
Core Tier 1 9.3 9.0 11.9 13.3 11.9
Tier 1 10.0 10.9 14.0 15.3 13.5
Total 14.5 15.3 19.0 19.8 16.7
Per ordinary share
Basic earnings ($) 1.36 1.25 1.19 1.52 1.43
Net asset value ($) 10.91 8.90 11.17 12.51 13.23
4
Net dividend () 73.7 60.0 60.0 70.0 60.0
4
Dividend cover (times) 1.90 2.14 2.10 2.25 2.46
Notes:
1
Excluded one-time gain on sale of UOB Life Assurance Limited and United Industrial Corporation Limited.
2
Attributable to equity holders of the Bank.
3
The Group adopted Basel II framework for its capital adequacy ratio computation in accordance with the revised MAS Notice 637 which took effect on January 2008.
Prior to that, the Group adopted Basel I framework.
4
2007 and 2010 included special dividends of 12.3 cents and 10.0 cents respectively.

Financial Highlights
Total income $5,699 million 3.5% Overseas profit contribution 34.7% 3.2%pt
38.8%
35.9% 35.5%
31.9% 32.0%
1,975 2,021
1,675 1,732
1,892 Singapore 65.3%
Malaysia 16.0%
3,576 3,674 3,532 3,678 Thailand 1.8%
2011 Indonesia 5.4%
2,980
Greater China 5.2%
Others 6.3%
2007 2008 2009 2010 1 2011

Net interest income ($ million) Non-interest income ($ million)
Non-interest income/Total income (%)
Core business was resilient. Income growth was underpinned by strong Overseas contributed 34.7% to the Groups net profit before tax, while
fee and commission income as well as net interest income. Singapores contribution was 65.3%.
Fee income rose 13.3% year-on-year with increased cross-selling across
geographies and products, leveraging on the Groups pan-regional
franchise. Loan-related fee income reached a new yearly high of
$370 million, an increase of 29.9%.
Net interest income grew 4.1% supported by robust loans growth.
Net profit after tax $2,327 million (4.1%) Customer loans $141 billion 25.6%
Customer deposits $169 billion 19.1%
Loans/Deposits 83.3% 4.3%pt
86.6% 84.5%
2,426 81.6% 83.3%
2,327 79.0%
2,109 169
1,937 1,902
142 141
118 122
107 112
93 100 99
2007 2008 2009 2010 1 2011 2007 2008 2009 2010 2011
Net profit after tax ($ million) Loans ($ billion) Deposits ($ billion) Loans/Deposits (%)
Note: Net loans were net of cumulative impairment.
Net profit for the year 2011 was $2.3 billion, 4.1% lower than a year Net loans grew 25.6% for the year to $141 billion. The increase was broad
ago. The increase in total income was offset by higher expenses, based across geographies and industries as the Groups regionalisation
coupled with higher collective impairment charges set aside due to strategy and cross-selling efforts continued to deliver results.
strong loans growth.
The Groups funding capabilities continued to be strong. Customer
deposits rose 19.1% to $169 billion across the entire global network.
Singapore grew 12.9% while the regional franchise delivered a significant
increase of 38.1%. In addition, deposits from the rest of the world rose
20.6% supported by the Groups strong credit rating.
Consequently, the loans-to-deposits ratio was healthy at 83.3%.
1

Financial Highlights
Loans by geography $144 billion 25.0% Total assets $237 billion 10.8%
Return on assets 1.06% (0.18%pt)
1.24% 1.24%
($ billion) 1.07% 1.06% 1.06%

Singapore 92.3 237
Malaysia 20.7 214
Thailand 7.8 183 186
2011 175
Indonesia 5.8
Greater China 8.4
Others 8.9
2007 2008 2009 2010 1 2011

Total assets ($ billion) Return on assets (%)
Loans from the regional countries rose 35.2%, while loans growth from The Groups total assets expanded 10.8% in 2011 to a new high of
Singapore was also strong at 22.2%. $237 billion as Singapore and the regional countries continued to grow.
Return on assets for 2011 was 1.06%.
Shareholders equity $23 billion 7.0% Core Tier 1 CAR 11.9% (1.4%pt)
Return on equity 11.1% (1.8%pt) Tier 1 CAR 13.5% (1.8%pt)
Total CAR 16.7% (3.1%pt)
12.6% 12.9%
12.2% 11.9% 19.8%
11.1% 19.0%
16.7%
15.3% 15.3%
14.5% 14.0% 13.5%
23.0
21.5 10.9% 13.3%
19.0 10.0% 11.9% 11.9%
17.3
15.6
9.3% 9.0%
2007 2008 2009 2010 1 2011 2007 2008 2009 2010 2011
Shareholders equity ($ billion) Return on equity (%) Core Tier 1 CAR (%) Tier 1 CAR (%) Total CAR (%)
Note: The Group adopted Basel II framework for its capital adequacy ratio computation
in accordance with the revised MAS Notice 637 with effect from January 2008.
Shareholders equity rose 7.0% for the year to $23 billion. This was The Groups capital position remained strong. As at 31 December
mainly contributed by higher retained earnings and the issuance of new 2011, Group Tier 1 and total capital adequacy ratios at 13.5% and
ordinary shares pursuant to the scrip dividend scheme. Return on equity 16.7% respectively were well above the regulatory requirements.
in 2011 was 11.1%, lower by 1.8% points mainly due to the enlarged These ratios were lower than a year ago due to higher risk-weighted
shareholders equity. assets arising from the significant loans growth, partly offset by higher
retained earnings.
1

Chairmans Statement
2011 Review The Board has transferred $300 million to general reserve.
The global economy was on a roller coaster ride in 2011, raising It recommends a final one-tier tax exempt dividend of 40 cents
widespread fears of derailment as one European Union country per ordinary share. Together with the interim dividend of 20 cents,
after another verged on the brink of financial collapse. Thankfully total dividends for 2011 would amount to 60 cents per
a total meltdown was averted but financial markets and world ordinary share.
trade were battered.
Corporate Developments
Confronted by shrinking orders and volatile capital markets, In line with our ongoing efforts to achieve an efficient mix of
the Singapore economy decelerated. From a high Gross capital, the Bank successfully raised S$1 billion 3.45% 10-year
Domestic Product (GDP) growth of 14.5% in 2010, it closed subordinated notes due in 2021 with a call option after five
2011 with a modest GDP growth of 4.9%. years. These notes which qualify as Tier-2 regulatory capital,
were used to partially finance the redemption of the $1.3 billion
UOB Groups Performance & Dividend 4.95% 10-year subordinated notes in September 2011.
The liquidity crises of the Eurozone, coupled with interest margin
compression in Singapore resulted in a drop in the Groups after- During the year, the Vietnamese authorities raised the ceiling for
tax profit. Despite a 25.6% increase in non-bank loans and a foreign investments in their local banks. We see good growth
rise of 19.1% in deposits, the Groups after-tax profit (excluding potential in Vietnam and seized the opportunity to increase our
2010s extraordinary gains) decreased by 4.1% to $2.327 billion stake in Vietnams Southern Bank from 14.92% to 19.99%.
(2010: $2.426 billion). PT Bank UOB Buana has been renamed PT UOB Indonesia to be
consistent with the names of our other regional subsidiaries.
On the positive side, we saw improved earnings among our
regional subsidiaries. The operating profit contributions from In January this year, the Board welcomed a new Director,
our overseas network increased from 34.6% to 38.2% in 2011, Mr Hsieh Fu Hua, who has extensive experience in the
propelled by Malaysia and Greater China. financial sector.
8
Chairmans Statement
In anticipation of a more challenging business environment,

capital and cost management and improving productivity will
be the Groups top priorities. Business profitability and not
business volume must be the rule of the day.
2012 Outlook In the uncertain and volatile business environment, the Board
The World Bank has slashed its 2012 forecast for global will continue to closely monitor and ensure that the Group has
economic growth from 3.6% to 2.5% while the International a robust risk management structure and culture in place. The
Monetary Fund has adjusted it to 3.3% from the earlier forecast central plank of our risk management platform is that long-term
of 4%. The Singapore Government has cautioned against high interests should never be sacrificed for short-term gains.
growth expectations, forecasting GDP growth this year to be
between 1% and 3%. Acknowledgement
Messrs Ngiam Tong Dow and Philip Yeo Liat Kok have decided
Amid constant threats of sovereign defaults in the Eurozone, not to seek re-election at the forthcoming annual general
and attendant pressures on liquidity and embattled financial meeting to facilitate the renewal of the Board. The Board would
institutions, the only certainty is that the world economy will like to record our deep appreciation to them for their guidance
continue to witness greater volatilities and uncertainties. Even and invaluable contributions in the past decade.
if the rescue measures work, full recovery and stability will take
some time. I also want to express my appreciation to the other Board
Directors for their wise counsel during the past year. Credit is
In anticipation of a more challenging business environment, also due to Management and staff for their commitment and
capital and cost management and improving productivity will be hard work in a difficult business environment. Last but not least
the Groups top priorities. Business profitability and not business important, I thank all our shareholders and our customers for their
volume must be the rule of the day. loyal support.
At the same time, we will continue to build upon the growth

momentum of our regional subsidiaries. With our wide regional Wee Cho Yaw
coverage we believe the Group is well placed to ride on the crest Chairman
of intra-Asia trade and investments. February 2012

Deputy Chairman & CEOs Report
We began 2011 cautiously optimistic that our core markets in Our priorities and performance in 2011 continued to reflect this
Asia would prove resilient in the face of global turbulence. True to commitment. Ever mindful that liabilities are increasingly a banks
our expectations, Asian economies by and large fared better than greatest asset, our focus during the year was to strengthen our
their Western counterparts. funding capabilities, while staying selective and disciplined in
growing our business.
In 2011, we stayed true to our philosophy of balancing growth
with stability, building a long-term customer franchise and Our extensive regional network and strong credit ratings allowed
creating sustainable value for our shareholders. us to tap diversified and stable sources of funding. We increased
the proportion of customer deposits in our funding mix. We also
We are confident that our approach and the initiatives we have paced our assets growth such that our Groups loans-to-deposits
underway will stand us in good stead to strengthen and to grow ratio was well managed at 83% and our US$ loans-to-deposits
our business for the long haul. ratio now stands at less than 100%.
Strengthening our core business We diversified our funding base by relying less on interbank
Even as events in the West continued to cast a shadow over borrowings and more on longer-dated debt instruments.
Asia in 2011, we held steadfast in our strategy to deepen and Our interbank funding declined from 17% of our liabilities base in
to extend our regional franchise. Our emphasis remains on the 2010 to 9% in 2011. We also set up a US$5 billion US Commercial
fundamentals of banking ensuring balance sheet strength Paper programme last year, in addition to the $5 billion Euro-
which ultimately determines our ability to support customers and Medium Term Notes programme we have had in place since 2010.
to ride out credit cycles.
Assets-wise, we used our balance sheet to strengthen our
Today, the banking industry is beingredefined. With capital and customer franchise across Asia. Our loans grew robustly by 25%,
funding increasingly scarce, we must be all the more strategic well ahead of the 13% growth we achieved in 2010. We have
and selective in where we invest our resources. We will grow built a diversified, quality loans portfolio of $144 billion spread
where we can make a meaningful difference for our stakeholders, across countries and industry segments. We sharpened our
and not just for the sake of growing. focus on our target segments and risk-adjusted returns.

Today, the banking industry is beingredefined. With capital

and funding increasingly scarce, we must be all the more
strategic and selective in where we invest our resources.
We will grow where we can make a meaningful difference for
our stakeholders, and not just for the sake of growing.
We improved our asset quality, lowering our non-performing We continued to invest in building capabilities, which saw
loans ratio from 1.8% in 2010 to 1.4% in 2011. Our impairment expenses rise 8.5%, bringing our cost-to-income ratio to 43% in
coverage is among the industrys highest. In light of uncertainties 2011. We will continue to increase our productivity and operational
in the Eurozone and the upcoming Basel III requirements, we efficiency through initiatives such as streamlining processes and
pared down our European bank debt securities. This resulted in integrating our global functions.
some investment losses but we took the stand to lower market
risks at the expense of short-term profitability. It is also in line We ended the year with a stronger balance sheet, more diversified
with our strategy to rebalance our portfolio towards Asia and revenue streams and deeper customer relationships.
our core franchise.
Our sensible, steady approach to managing our business and
Our capital ratios remained strong, with core Tier 1 at 11.9%, balance sheet has maintained our Aa1 rating by Moodys.
Tier 1 at 13.5% and total CAR at 16.7% as of 31 December 2011. In 2011, Standard and Poors raised our rating by one level to
AA-. Combined, these ratings place us among the worlds top-
Overall, we delivered a full-year core net profit after tax of rated banks.
$2.3 billion, 4.1% lower than the previous year, as higher
total income was offset by operating expenses and collective Regionalisation on track
impairment charges. Total income rose 3.5% year-on-year to Our focus remains on transforming UOB into a premier regional
$5.7 billion, driven by momentum in our core business. bank. Our strategy is delivering results, with growth in regional
operating profit, fees, loans and deposits outpacing that of
Net interest income grew 4.1% as strong loans growth more than Singapore. Overall, overseas operating profit rose 11% in 2011 to
offset the impact of lower loan yields and rising funding costs. $1.24 billion and the contribution from overseas markets to Group
It reached a record high in the fourth quarter coupled with a net profit before tax increased from 31.5% in 2010 to 34.7% in
rebound in net interest margin. Fee and commission income grew 2011. This progress illustrates how we are seizing opportunities
robustly by 13.3% during the year, as we intensified cross-selling created by rising intra-regional trade and consumer affluence
efforts across our regional franchise. Trading and investment in Asia.
income was lower due to weaker global market sentiments in the
second half of the year.

Our integrated regional platform enables better customer Our commitment to providing superior customer service was
acquisition and retention, faster speed-to-market, higher again recognised in 2011, most notably during the Excellent
operational efficiency and stronger risk management. This Service Awards (EXSA) in Singapore. For the third consecutive
benefits both the customer and the Bank through seamless year UOB won the most EXSA awards over any other bank in
customer experience, higher productivity and stronger controls. Singapore and for the second consecutive year we produced The
Association of Banks in Singapores (ABS) Service Excellence
Our full ownership of regional subsidiaries allows us to integrate Champion the highest individual honour given for superior
our operations faster and more effectively. We are running service in the banking and financial sector.
full-steam ahead in this regard and will be completing our
integrated platform by the end of 2013. The standardisation We also sought new ways to serve and to connect with our
of core systems and functions globally has resulted in customers.
lower processing costs and better risk management. To
boost productivity, we have started off-shoring some In Singapore, we launched the industrys first mobile banking
back-office processes through our centres of excellence, the first application that enables people to make cardless cash
of which is in Malaysia. We are also streamlining workflows withdrawals. The UOB Mobile Cash feature makes it possible
through technology in areas such as mortgage approval. to send money quickly and securely to a list of preregistered
Such enhancements can be readily replicated across our network recipients who can then withdraw cash without cards at any of
with our integrated platform. our UOB ATMs across the island.
Deepening customer relationships In 2012, we will build on our successes and look for opportunities
Over the years, our disciplined approach has enabled us to seize to deliver more to our customers, and in doing so, not lose
the right opportunities at the right time, and to build an unrivalled sight of the fact that we must uphold fair dealing principles in
network in Southeast Asia. our approach and through our behavior. What is not right for the
customer is not right for us.
We have improved our ability to offer comprehensive solutions
to serve our growing customer base. We have done this through Redefining wealth management
matching the right products and solutions to the customers Asia is now second only to North America as the place with
circumstances. As a result, we have improved the penetration the largest number of high net worth individuals (HNWI).
of our loans, investment and deposits products across our The rise of the Asian HNWIs has brought with it many
customer segments. opportunities for those looking to meet the needs of this
growing customer base.
For example, our partnership with Prudential has proven
successful through the marriage of our distribution channels UOB is in a unique position to understand and to serve
across the region to their products. We extended our international Asias rising rich. Driving the rise in wealth are two factors
home loans scheme to financing properties in London for our an entrepreneurial spirit in those generating wealth and
customers. Our fund management joint venture with Ping An for those who have already made their money, wealth
Trust Co. Ltd in China was recognised as the fund company enhancement. Both of these factors are inherent in our own
having the most potential in China by Moneyweek China. growth story as 77 years ago our founders entrepreneurial
Its inaugural fund launched in 2011 was ranked among the spirit gave rise to the company we are today. Since then, we
top five equity fund launches in terms of funds raised in China. have built a fully-owned franchise without peer in Southeast
We were also the first foreign Asian bank to be allowed to trade Asia. We believe this gives us a perspective, position and
gold on the Shanghai Gold Exchange. This licence enables us experience that no other Asian commercial bank can offer
to strengthen our presence in the international gold market and and one which existing and potential customers seek in a
expand our gold-related products and services for our customers banking partner.
in one of the worlds major gold trading centres.

In 2010, we created new definitions of wealth in the Asian In 2011, we were named Best SME Banking in The Asian Banker
context through our deep understanding of customers and their Excellence in Retail Financial Services awards. We also won
life stages and life goals, socio-economic demographics and The Assets Rising Star Award for our trade and cash
wealth drivers. All this came together in our refined customer management services in Malaysia and Thailand. As a leader
segmentation approach and wealth management strategy. in these areas, we look for new ways in which to help
This year, we advanced our strategy with Privilege Reserve, businesses grow.
Privilege and Wealth Banking customer segment propositions.
We have also brought together our extensive network and Looking ahead
product capability to ensure we provide holistic solutions in Asia is holding up well in a time of global uncertainties. Although
response to what Asias increasingly affluent consumers want. we remain vigilant to the impact of deeply-rooted issues in the
West which will take time to resolve, we know the long-term
In support of this strategy, we expanded our wealth management prospects for Asia remain positive.
footprint by opening 13 new centres in 2001, including our first
Privilege Banking Centre in Shanghais Xin Tian Di district. We We have made solid progress on our regionalisation strategy in
now have 41 dedicated wealth management centres across Asia 2011 and enter 2012 knowing that our core business remains
and aim to have 65 by 2015. We see significant upside in terms strong, our balance sheet sound and our customer relationships
of assets under management and customer acquisition through deepened. We have the right resources in the right markets.
these new centres. We will continue to make investments that will strengthen our
position to ride on the rising intra-regional trade flows and growing
Helping customers grow their businesses consumer affluence in the region.
The rise of Asia as the worlds economic engine of growth has
brought with it increasing demand from companies in the region One of our chief investments is in our people, where we remain
which are looking for faster and better ways of managing their focused on developing their potential, building bench strength
businesses as they expand beyond their home markets. and enhancing our regional talent pool to serve our growing
franchise. We have a team that often goes beyond the call of
With our capabilities and long-standing presence in Southeast duty. This was illustrated when our people rallied behind our
Asia, UOB is best placed to deliver unmatched services to small, colleagues and customers in Thailand during the Southeast
medium, large and multi-national corporates looking to seize Asian floods to raise funds and to provide relief to the victims.
new market opportunities across the region. We also sharpened The effort epitomises the culture at UOB teams working across
our focus on transaction banking, structured trade, treasury and borders to help one another. This is the foundation upon which
investment banking services. Demand for these activities has our success is built.
grown as customers expand regionally. In these areas, we grew
our fees from our overseas markets by 30% to 80% over last We are confident that we are well-positioned to capture new
year. Group trade assets doubled year-on-year with Indonesia opportunities across Asia.
and China growing five-fold and thirteen-fold respectively.
Our achievements in 2011 were made possible through the
To help businesses capitalise more fully on intra-regional trade invaluable advice and guidance of our Board of Directors and the
flows, we also set up a dedicated Foreign Direct Investment commitment of our management and staff. I am also grateful to
(FDI) advisory unit. This unit, a first for a Singapore bank, our customers and investors for their continued support of, and
supports businesses in setting up in Singapore and expansion belief in, UOB.
into the region. The FDI unit provides assistance ranging from
company incorporation, access to UOBs full suite of corporate
and personal banking products to borderless financial services Wee Ee Cheong
through the Banks long established regional network. Deputy Chairman & CEO
February 2012

Board of Directors
Wee Cho Yaw Wee Ee Cheong

Chairman Deputy Chairman & Chief Executive Officer
Age 83. A banker with more than 50 years experience, Dr Wee Age 59. Mr Wee was appointed to the Board on 3 January 1990
has been the Chairman and Chief Executive Officer (CEO) of UOB and last re-elected as Director on 29 April 2011. A career banker,
since 1974. He relinquished his CEO position on 27 April 2007. Mr Wee joined UOB in 1979, and has extensive experience
He was appointed to the Board on 14 May 1958 and last handling various functions across the Bank. He served as Deputy
re-appointed as Director on 29 April 2011. He is the Chairman of Chairman and President of the Bank from 2000 to April 2007
the UOB Executive, Remuneration and Board Risk Management before being appointed as Chief Executive Officer on 27 April 2007.
Committees, and a member of the Nominating Committee. He is a member of the UOB Executive and Board Risk
Management Committees.
Dr Wee is the Chairman of UOB subsidiaries, Far Eastern Bank,
United Overseas Insurance, United Overseas Bank (Malaysia) He also holds directorships in several UOB subsidiaries and
and United Overseas Bank (Thai) Public Company, President affiliates including Far Eastern Bank, United Overseas Insurance,
Commissioner of PT Bank UOB Indonesia, and Supervisor of United Overseas Bank (Malaysia), United Overseas Bank (Thai)
United Overseas Bank (China). He is the Chairman of United Public Company and United International Securities. He is the
International Securities, Haw Par Corporation, UOL Group, Chairman of United Overseas Bank (China) and Vice President
Pan Pacific Hotels Group, United Industrial Corporation, and Commissioner of PT Bank UOB Indonesia.
Singapore Land and its subsidiary, Marina Centre Holdings. He is
also the Chairman of the Wee Foundation. Mr Wee is actively engaged in regional business development
through his participation in key industry bodies. He serves as a
Dr Wee was conferred the Businessman of the Year award twice council member of The Association of Banks in Singapore and
at the Singapore Business Awards in 2001 and 1990. In 2006, as a director of The Institute of Banking & Finance and chairs
he received the inaugural Credit Suisse-Ernst & Young Lifetime the Financial Industry Competency Standards (FICS) Steering
Achievement Award for his outstanding achievements in the Committee. He is a member of the Board of Governors of
Singapore business community. In 2009, he was conferred the Singapore-China Foundation, Visa APCEMEA Senior Client
Lifetime Achievement Award by The Asian Banker. Dr Wee is Council and Advisory Board of INSEAD East Asia Council and
the Pro-Chancellor of Nanyang Technological University and International Council.
Honorary President of the Singapore Chinese Chamber of
Commerce & Industry, Singapore Federation of Chinese Clan He is a director of the Wee Foundation, as well as the patron of the
Associations and Singapore Hokkien Huay Kuan. He received Nanyang Academy of Fine Arts. Mr Wee is an honorary council
Chinese high school education and was conferred an Honorary member of the Singapore Chinese Chamber of Commerce &
Doctor of Letters by National University of Singapore in 2008. Industry. He had previously served as Deputy Chairman of the
He was also conferred the Distinguished Service Order, Housing & Development Board, and as a director of the Port of
Singapores highest National Day Awards in 2011, for his Singapore Authority, UOL Group and Pan Pacific Hotels Group.
outstanding contributions in community work.
He holds a Bachelor of Science (Business Administration) and a
Master of Arts (Applied Economics) from The American University,
Washington, DC.

Board of Directors
Ngiam Tong Dow Cham Tao Soon

Age 74. Mr Ngiam was appointed to the Board on 1 October 2001 Age 72. Prof Cham was appointed to the Board on 4 January 2001
and last re-appointed as Director on 29 April 2011. and last re-appointed as Director on 29 April 2011.
An independent and non-executive director, he is a member An independent and non-executive director, he is the Chairman
of the Banks Executive, Nominating and Board Risk of the Banks Audit Committee and a member of the Banks
Management Committees. He is a director of Far Eastern Bank, Executive, Nominating, Remuneration and Board Risk
a UOB subsidiary. Management Committees. Prof Cham is a director of the Banks
subsidiaries, namely, Far Eastern Bank and United Overseas
Mr Ngiam is also a director of Singapore Press Holdings Bank (China). He is the Chairman of NSL Ltd, MFS Technology
and Yeo Hiap Seng. He served as Chairman of the Housing and the Board of Governors of Singapore-China Foundation,
& Development Board from 1998 to 2003 and Surbana and Deputy Chairman of Singapore Press Holdings. He is a
Corporation from 2003 to 2008. He has a distinguished public director of Soup Restaurant Group and Singapore International
service career, having held the post of Permanent Secretary in Foundation. He is a former director of Adroit Innovations, Keppel
the Prime Ministers Office and the Ministries of Finance, Trade Corporation, Land Transport Authority, TPA Strategic Holdings,
and Industry, National Development, and Communications. Robinson & Company and WBL Corporation, and the former
He is the former Chairman of Central Provident Fund Board, Chairman of Singapore Symphonia Company.
Development Bank of Singapore, Economic Development
Board and Telecommunication Authority of Singapore, and Prof Cham is the Chancellor of SIM University and Chairman
former Deputy Chairman of the Board of Commissioners of of its Board of Trustees, and founding President of Nanyang
Currency, Singapore. Technological University from 1981 to 2002.
He holds a Bachelor of Arts (Economics, Hons) from University of He holds a Bachelor of Engineering (Civil, Hons) from University
Malaya, Singapore, and a Master of Public Administration from of Malaya, a Bachelor of Science (Mathematics, Hons) from
Harvard University, USA. University of London and a Doctor of Philosophy (Fluid Mechanics)
from University of Cambridge, UK. He is also a Fellow of Institution
of Engineers, Singapore, Academy of Engineering, Singapore,
Royal Academy of Engineering, UK and Institution of Mechanical
Engineers, UK and a foreign member of Royal Swedish Academy
of Engineering Sciences, Sweden.

Board of Directors
Wong Meng Meng Yeo Liat Kok Philip

Age 63. Mr Wong was appointed to the Board on 14 March 2000 Age 65. Mr Yeo was appointed to the Board on 26 May 2000 and
and last re-elected as Director on 30 April 2010. An independent last re-elected as Director on 30 April 2010. An independent and
and non-executive director, Mr Wong is the Chairman of non-executive director, he is a member of the Banks Executive,
the Banks Nominating Committee. He is also a director of Audit and Remuneration Committees. He is a director of
Far Eastern Bank, a UOB subsidiary. Far Eastern Bank, a UOB subsidiary.
Mr Wong is a lawyer by profession, and a Senior Counsel. Mr Yeo is the Chairman of SPRING Singapore. Recognised
He is the founder-consultant of WongPartnership LLP. He is the for his contributions to Singapores economic development
President of The Law Society of Singapore, a Vice President and pioneering role in promoting and developing the countrys
of Singapore Academy of Law, and a member of the Public information technology, semiconductor, chemical and
Guardian Board. Mr Wong is the Chairman of Mapletree pharmaceutical industries, Mr Yeo brings to the Bank wide
Industrial Trust Management and FSL Trust Management. government and private sector experience.
He had previously served as a member of the Military Court of
Appeal and the Advisory Committee of Singapore International Mr Yeo serves as a member of the United Nations Committee
Arbitration Centre. of Experts in Public Administration (CEPA), established by the
Economic and Social Council (ECOSOC) from 2010 to 2013
While in active practice, Mr Wong had consistently been for the promotion and development of public administration
acknowledged as one of the worlds leading lawyers in leading and governance among Member States, in connection with the
directories such as The International Whos Who of Commercial United Nations Development Agenda.
Litigators, The Guide to the Worlds Leading Experts in Commercial
Arbitration, Asialaw Leading Lawyers, PLC Cross-border Dispute He is the former Chairman of the Agency for Science, Technology
Resolution: Arbitration Handbook, The International Whos & Research (A*STAR) and Economic Development Board, and
Who of Construction Lawyers and Best Lawyers International: former Special Advisor for Economic Development in the Prime
Singapore, among others. Ministers Office. He is the Chairman of Accuron Technologies,
MTIC Holdings, Singapore Aerospace Manufacturing, Ascendas
Property Fund Trustee and Hexagon Development Advisors.
Mr Yeo is a director of City Developments and Vallar PLC (UK).
Mr Yeo holds a Bachelor of Applied Science (Industrial

Engineering) and an honorary Doctorate in Engineering from
University of Toronto, an honorary Doctorate in Medicine from
Karolinska Institutet, Sweden, a Master of Science (Systems
Engineering) from University of Singapore, a Master of Business
Administration from Harvard University, USA, a Doctor of Science
from Imperial College London, an honorary Doctor of Letters from
National University of Singapore and an honorary Doctor of Law
from Monash University of Australia.

Board of Directors
Thein Reggie Franklin Leo Lavin

Age 71. Mr Thein was appointed to the Board on 28 January 2008 Age 54. Mr Lavin was appointed to the Board on 15 July 2010
and last re-appointed as Director on 29 April 2011. and last re-elected as Director on 29 April 2011.
An independent and non-executive director, he is a member An independent and non-executive director, he is a member of
of the UOB Audit Committee. In 1999, he retired as Senior the UOB Nominating Committee.
Partner, Coopers & Lybrand Singapore, the legacy firm of
PricewaterhouseCoopers, after 37 years with the firm. Mr Thein Mr Lavin is the Chairman and Chief Executive Officer of Export
is currently a director and the Chairman of the audit committees Now and serves as Chairman of the Public Affairs Practice for
of several listed companies, namely, GuocoLand, GuocoLeisure, Edelman Asia Pacific. He is a director of Globe Specialty Metals,
Haw Par Corporation, FJ Benjamin Holdings, M1 Limited, Keppel Consistel (Singapore) and Utex Industries. He served as Chairman
Telecommunications & Transportation, and Otto Marine. He is a of the Steering Committee of the Shanghai 2010 World Expo
former director of MFS Technology. USA Pavilion.
Mr Thein is a Fellow of Institute of Chartered Accountants in He has wide experience in government having served as Under
England and Wales and a member of Institute of Certified Public Secretary for International Trade at the Department of Commerce
Accountants of Singapore. He is the Vice Chairman and a member (2005-2007) and US Ambassador to Singapore (2001-2005)
of the governing council of Singapore Institute of Directors. where he helped to negotiate the landmark US-Singapore Free
Mr Thein was awarded the Public Service Medal by the President Trade Agreement. Mr Lavin previously held senior finance and
of Singapore in 1999. management positions in Citibank and Bank of America.
Mr Lavin has a Bachelor of Science from the School of Foreign

Service at Georgetown University, a Master of Science in Chinese
Language and History from Georgetown University, a Master
of Arts in International Relations and International Economics
from the School of Advanced International Studies at the Johns
Hopkins University and a Master of Business Administration in
Finance at the Wharton School at University of Pennsylvania.

Board of Directors
Cheng Jue Hiang Willie Tan Lip-Bu

Age 58. An independent and non-executive director, Mr Cheng Age 52. Mr Tan was appointed to the Board on 15 November 2010
was appointed to the Board on 15 July 2010 and last re-elected and last re-elected as Director on 29 April 2011.
as Director on 29 April 2011. An independent and non-executive director, he is a member of
the UOB Board Risk Management Committee.
He is a director of Singapore Press Holdings, Singapore
Health Services, Integrated Health Information Systems and He is the Founder and Chairman of Walden International, a leading
NTUC Fairprice Co-operative. He has a strong background in venture capital firm. He concurrently serves as President and
accounting, finance and infocomm technology. He retired as a Chief Executive Officer of Cadence Design Systems and has been
managing partner of Accenture after 26 years with the global a member of its board since 2004. He also serves on the boards
management and technology consulting firm. He also brings of Flextronics International, SINA Corporation, Semiconductor
his experience to non-profit organisations, serving as a director Manufacturing International Corporation and Inphi Corporation.
of SymAsia Foundation, Singapore Cooperation Enterprise,
Council for Third Age, Asia Philanthropic Ventures, Lien Centre He is a member of the Committee of 100, the Dean Advisory
for Social Innovation and Caritas Humanitarian Aid & Relief Board at the University of California at Berkeley, the School of
Initiatives, Singapore. Engineering Deans Council and the Board of Trustees at Carnegie
Mellon University, and the School of Engineering Deans Advisory
Mr Cheng has a Bachelor of Accountancy (First Class Hons) Council at the Massachusetts Institute of Technology.
from University of Singapore. He is a Fellow of Institute of
Certified Public Accountants of Singapore and Singapore Mr Tan holds a Bachelor of Science from Nanyang University,
Institute of Directors, and an Honorary Fellow of Singapore Singapore, a Master of Science in Nuclear Engineering from the
Computer Society. Massachusetts Institute of Technology, and a Master of Business
Administration from the University of San Francisco.

Board of Directors
Hsieh Fu Hua
Age 61. Mr Hsieh was appointed to the Board on 16 January 2012.
An independent and non-executive director, he will stand for
re-election at UOBs annual general meeting on 26 April 2012.
Mr Hsieh is currently an adviser to PrimePartners Group, which

he co-founded, and a director of ICAP plc, Fullerton Fund
Management Company and Tiger Airways Holdings. He also
serves on the boards of a number of non-profit organisations
including National University of Singapore (NUS), NUS Business
School, National Arts Council, Singapore Indian Development
Association, and Stewardship and Corporate Governance Centre.
He had previously served as Chief Executive Officer and a director

of Singapore Exchange (2003-2009), and as a board member
of Temasek Holdings (2010-2012) and Government of Singapore
Investment Corporation (2003-2010).
Mr Hsieh holds a Bachelor of Business Administration (Hons)

from University of Singapore.

Principal Officers
MANAGEMENT EXECUTIVE COMMITTEE Chew Mei Lee

Group Compliance
Wee Ee Cheong Ms Chew joined UOB in 2006 as Group Head of Compliance. She holds
Deputy Chairman & Chief Executive Officer a Bachelor of Laws (Hons) degree from the University of Malaya, Malaysia,
Chong Kie Cheong and was admitted to the Malaysian Bar to practise as an Advocate and
Group Institutional Financial Services Solicitor of the High Court of Malaya in 1979.Since then, she has served
Mr Chong joined UOB in 2005. He leads the Groups Institutional as global and regional head in compliance, legal and corporate secretariat
Financial business, focusing on medium enterprises and large capacities in the financial services industry working with international and
corporations. He oversees the Transaction Banking, Structured Trade regional banks.
and Ship Finance businesses. Mr Chong holds a Bachelor of Social Chng Seng Hong Ronny
Sciences (Hons) in Economics from the University of Singapore. Group Investment Banking
He has more than 30 years of experience in the financial industry. Mr Chng joined UOB in 2008. He oversees Group Investment Banking,
Mr Chong retired on 1 January 2012. comprising Debt Capital Markets, Equity Capital Markets, Mergers and
Acquisitions and Leverage Finance businesses. He holds a Bachelor
Lee Chin Yong Francis of Business (Hons) and a Master of Business from the Nanyang
Group Retail Technological University, Singapore. He has 14 years of experience in
Mr Lee joined UOB in 1980. He currently leads the Groups consumer investment banking and related industries.
and small business retail divisions. Prior to his appointment in Singapore
in 2003, he was the Chief Executive Officer (CEO) of UOB (Malaysia). Foo Moo Tan Peter
Between 2003 and 2008, Mr Lee was the head of International Overseas Treasuries
and spearheaded the Groups expansion in the region. He was also Mr Foo joined UOB in 2011. He heads the Treasury and Global Markets
responsible for the Banks Consumer Banking business in Singapore and business in the overseas subsidiaries and branches. Mr Foo holds a
the region. He holds a Malaysia Certificate of Education and has 33 years Bachelor of Estate Management (Hons) from the National University of
of experience in the financial industry. Singapore and is a Chartered Financial Analyst (CFA). He has 25 years
of experience in managing banking and financial markets businesses.
Lee Wai Fai He served as the Country CEO for a wholesale European bank in
Group Chief Financial Officer Singapore prior to joining UOB.
Mr Lee joined UOB in 1989. He holds a Bachelor of Accountancy
(Hons) from the National University of Singapore and a Master of Hwee Wai Cheng Susan
Business Administration in Banking and Finance from the Nanyang Group Technology & Operations
Technological University, Singapore. He has more than 20 years of Ms Hwee joined UOB in 2001. She is responsible for the provision of both
experience in banking. information technology and banking operations services and infrastructure
to ensure quality service delivery and operational efficiency. She holds a
Ong Sea Eng Terence Bachelor of Science from the National University of Singapore and has
Global Markets & Investment Management 30 years of experience in banking and operations.
Mr Ong joined UOB in 1982. He leads the Groups Global Markets and
Investment Management, Asset Management and Financial Institutions Khoo Boo Jin Eddie
Group businesses. He holds a Bachelor of Accountancy from the Personal Financial Services & Private Banking
University of Singapore. Mr Ong has more than 20 years of experience in Mr Khoo joined UOB in 2005 and is responsible for the Groups consumer
treasury services and operations. and private banking businesses mainly in Singapore, Malaysia, Thailand,
Indonesia, Vietnam and China. He has redefined the industrys strategic
MANAGEMENT TEAM approach to customer segmentation and wealth management to cater
to Asias new and growing affluent consumers. He holds a Bachelor of
Chan Vivien Business Administration in Finance and Management from the University
Group Legal & Secretariat of Oregon, USA and has 25 years of experience in consumer banking.
Mrs Chan joined UOB in 1981. She holds a Bachelor of Law (Hons) from
the University of Singapore. She was appointed as Group Secretary and Liew Khiam Soong Peter
Head of Legal in 1988. Group Credit (Corporate & Financial Institutions Group)
Mr Liew joined UOB in 2000. He oversees the credit approval function for
Cheo Chai Hong corporations and financial institutions. He holds a Bachelor of Commerce
Corporate Planning & International Strategy (Hons) in Banking and Finance from the University of Birmingham,
Mr Cheo joined UOB in 2005. He heads the Group Corporate Planning England. He has more than 30 years of corporate experience, with stints
and International Strategy Department which is responsible for driving in foreign banks in a number of countries.
the strategy and performance of the overseas banking subsidiaries and
branches. Mr Cheo holds a Bachelor of Business Administration (Hons) Mok Chek Pfam
from the University of Singapore. He has 34 years of experience in Group Management Portfolio
corporate and investment banking, project and ship finance and credit Mr Mok joined UOB in 2000. He is responsible for the management of
management and approvals. banks liquidity, funding and overall balance sheet. He holds a Bachelor
of Business Administration from the National University of Singapore.
Mr Mok has more than 25 years of treasury and investment experience.

Principal Officers
Ngeo Swee Guan Steven Tjuradi Karunia Wirawan

Group Credit (Retail) Corporate Banking Regional
Mr Ngeo joined UOB in 1982. He leads the credit approval team for the Mr Tjuradi joined UOB in 2005. He oversees the Banks corporate
consumer, high net-worth and small-business segments. Mr Ngeo holds banking business in the Greater China, Malaysia, Thailand and Indonesian
a Bachelor of Arts from the National University of Singapore. He has subsidiaries, as well as the Banks overseas branches. He holds a Bachelor
29 years of experience and had served in UOB (Malaysia) and UOB (Thai). of Business Administration (Summa Cum Laude) from the University of
Notre Dame, USA. He has more than 23 years of banking experience in
Ng Kwan Meng corporate and investment banking. He had served as the Country CEO
Group Global Markets for Indonesia in another Bank prior to joining UOB.
Mr Ng joined UOB in 2001. He is responsible for the Banks Group Global
Treasury business in Singapore and overseas locations. His responsibilities Wee Joo Yeow
include trading, structuring, corporate sales, margin trading, banknotes, Corporate Banking Singapore
precious metals and financial futures. He holds a Bachelor of Social Mr Wee joined UOB in 2002. He holds a Bachelor of Business
Science (Hons) from the National University of Singapore. Mr Ng has Administration (Hons) from the University of Singapore and a Master of
28 years of experience in global markets. Business Administration from New York University, USA. Mr Wee has
more than 30 years of corporate banking experience.
Ngo Victor
Group Audit Wong Mei Leng Jenny
Mr Ngo joined UOB in 2004. He holds a Bachelor of Applied Science in Group Human Resources
Computer Science and Operations Management from the University of Ms Wong joined UOB in 2005. She holds a Bachelor of Arts (Hons)
Technology, Sydney, a Master of Business Administration from Deakin from the University of Singapore and a Graduate Diploma in Personnel
University, Australia, and an Executive Master of Science in Finance from Management from the Singapore Institute of Management. She is a
Baruch College, City University of New York, where he was elected to the seasoned human resource practice leader with many years of experience
Beta Gamma Sigma Honor Society. He is a Fellow of Australian Society in managing human resources.
of Certified Practising Accountants, a Fellow of the Institute of Certified
Public Accountants of Singapore and a Certified Information Systems Yeo Eng Cheong
Auditor. He is also a voting member of the International Banking Security Group Credit (Middle Market & Structured Trade & Commodity Finance)
Association. He has 25 years of experience in banking and finance. Mr Yeo joined UOB in 1986. He oversees the credit approval function
for middle market corporations and structured commodity financing.
Nicolette Rappa He holds a Bachelor of Business Administration (Hons) from the
Group Brand Performance and Corporate Communications University of Singapore. He has more than 30 years of experience in
Ms Rappa joined UOB in 2011. She leads the Groups Brand Performance, commercial banking.
Corporate Communications and Customer Advocacy and Service Quality
functions across the region. She holds a Bachelor of Social Sciences MAJOR OVERSEAS BANKING SUBSIDIARIES
(Hons) from the National University of Singapore and has more than
20 years of experience in the communications and financial services Armand B. Arief
industries in Singapore and in the Asia Pacific region. President Director, PT Bank UOB Indonesia
Mr Arief was appointed as President Director of UOB Buana in 2007.
Teo Gim Choo Wendy He holds a Bachelor of Business Administration from Curry College,
Channels Milton, Massachusetts, USA, and a Master of Business Administration
Ms Teo was appointed Head of Group Channels in 2009. Prior to her from Suffolk University, Boston, Massachusetts, USA. He has more
current appointment she held senior positions in Personal Financial than 20 years of experience in the banking industry and ten years in the
Services heading Sales and Distribution as well as Privilege Banking. consumer goods and hospitality industries.
She is an Associate with Institute of Bankers, UK and has more
than 30 years of banking experience covering credit, consumer and Chan Kok Seong
private banking. Chief Executive Officer, United Overseas Bank (Malaysia) Bhd
Mr Chan was appointed as CEO of UOB (Malaysia) in 2003. He holds
Tham Kah Jin Eric a Bachelor of Accounting from the University of Malaya, Malaysia, and
Group Commercial Banking is a member of The Malaysian Institute of Certified Public Accountants.
Mr Tham joined UOB in 2003. He oversees the Groups medium-sized He has more than 25 years of experience in banking.
corporates and spearheads the expansion of this segment in Singapore
and the region, through the Banks subsidiaries in Malaysia, Thailand, Tan Kian Huat
Indonesia and China. Mr Tham holds a Bachelor of Business Administration President & Chief Executive Officer,
from the University of Singapore, and a Master of Business Administration United Overseas Bank (China) Limited
in Accountancy from the Nanyang Technological University, Singapore. Mr Tan was appointed as President and CEO of UOB (China) in 2008.
He has more than 30 years of experience in the financial industry. He holds a Bachelor of Science (Hons) from the University of Leeds, UK,
and a Master of Business Administration from the University of Bradford,
Tham Ming Soong UK. He has 28 years of experience in banking.
Chief Risk Officer
Mr Tham joined UOB in 2005. He holds a Master of Applied Finance from Wong Kim Choong
Macquarie University, Australia, and is a Fellow of the Financial Services President & Chief Executive Officer,
Institute of Australasia. He also has a professorship with the NUS Risk United Overseas Bank (Thai) Public Company Limited
Management Institute. He has more than 25 years of experience in the Mr Wong was appointed as President and CEO of UOB (Thai) in 2004.
financial services industry. Prior to his current appointment, he served in UOB and UOB (Malaysia).
Mr Wong holds a Bachelor of Commerce from the University of Toronto,
Canada. He has 27 years of experience in banking.

Riverside Scene by Tan Kian Por
Chinese ink and colour on paper
A selection of paintings in the Groups art collection captures

the development of UOB and the Singapore skyline over the
years. These paintings are a strong reminder of how Singapores
reputation as a financial centre has grown in tandem with our
presence. This painting of UOB Plaza 2 by Tan Kian Por in the late
1970s depicts UOB Plaza 2 by the banks of the Singapore River
when it was still bustling with bumboats. The tower was designed
by international architect Kenzo Tange and completed in 1973.
This riverside scene is an interpretation of the mountain and lakes

genre drawn from traditional Chinese ink painting. Instead of
conventional mountains and lakes, Tan has focused on Singapores
skyscrapers and the Singapore River.
Tan, a versatile and accomplished brush painter, calligrapher and

seal-carver, was awarded the Cultural Medallion in 2001.

United Overseas Bank Limited
(Incorporated in Singapore)
and its subsidiaries

31 December 2011
2011 in Review

2011 in Review
Asias strong economic fundamentals remained a bright spot RETAIL BANKING

in a year that brought global economic uncertainty. While 2011
The ongoing rise in income levels across the region has
started with a focus on Japan and the impact its earthquake
changed consumer demands and expectations. In line with
and tsunami would have on global growth forecasts, the
this fundamental change, our Group Retail segment focused
spotlight soon moved to the US and Europe as wave after wave
on enhancing our existing wealth management services and
of negative news hit the headlines.
extending our innovative and market-driven product suite across
the region.
Policymakers and business leaders in Asia rose to the challenges
that the ongoing uncertainty from the West had created and
Redefining wealth management to meet Asian needs
sought opportunities closer to home. The twin trends of strong
Our heritage places us in a unique position to be able to draw on
domestic economies and rising income levels in Asia, plus the
insights into Asias increasingly affluent consumer base. We have
increase in intra-regional trade flows within the region, provided
extensive experience and history in doing business in some of the
the necessary stimuli for Asian economies to maintain positive
worlds most dynamic and fastest growing markets and this has
growth, albeit at moderated levels.
created a knowledge base difficult for others to replicate.
We too focused on the opportunities inherent in Asia and ensured

We have broadened the traditional definition of wealth to include
that we invested in the capabilities and markets that would enable
two new customer segments in 2011 Privilege Reserve and
us to balance growth with long-term stability. Our disciplined
Wealth Banking. In May, we launched Privilege Reserve, offering
approach was an important factor in our ability to forge new
those with more than $2 million in investable assets an enhanced
customer relationships across the region and to identify and to
wealth management service. Our Privilege Reserve customers
seize new opportunities created by the continued rise of Asia.
are serviced by bankers who have received the UOB-National
University of Singapore (NUS) Executive Certificate. This wealth
Today, our growth stems from understanding the needs of Asian
management programme is the first structured certificate to be
consumers and businesses and from using the three core areas
designed and taught by the NUS Business School. It is also
of our business Group Retail, Group Institutional Financial
the first in Singapore to receive Financial Industry Competency
Services, and Global Markets and Investment Management
Standards (FCIS) accreditation offered by the Institute of Banking
to create the right solutions for our customers. Each of these
& Finance for the training of relationship managers in the affluent
business segments played an important role in deepening and
market. The programme is a key component of UOBs talent
extending our regional franchise in 2011 and in preparing us for
development and learning strategy that is specially tailored to
solid growth in 2012.
equip experienced relationship managers with in-depth and
up-to-date financial knowledge and practical advisory skills.

2011 in Review
As part of our wealth management strategy, we opened our flagship Privilege Reserve Suites at the Marina Bay
Financial Centre in May 2011.
In November, we launched our Wealth Banking customer segment To ensure we are well positioned to capture the opportunities
designed for the sizeable and growing but underserved segment that are being generated as a result of the increase in high net
of customers in Singapore we call the rising rich. This segment worth individuals in Asia over the last two years, we enhanced
comprises individuals with investible assets of at least $100,000 our client portfolio management, service offering and internal
and makes up 25% of the working population in Singapore, aged process management in our Private Banking business.
between 30 and 55 years old. While we have an established private banking presence in
Singapore, Hong Kong and Malaysia, we are also exploring
Alongside developing targeted products and services for our expanding further across the region to include new services in
wealth segments, we also set up flagship centres in Singapore China, Indonesia and Thailand.
from which to serve them better. For our Privilege and Privilege
Reserve customers, we opened the Privilege Banking Reserve Using product and network innovations
Suites and Privilege Banking Centre at Marina Bay Financial as a competitive advantage
Centre. For Wealth Banking customers, we opened Singapores
Bancassurance
first Wealth Banking Centre in the heart of Singapores shopping
We entered into an arrangement with Prudential in 2010 to
district, Orchard Road.
distribute their products. Substantial progress was made in 2011
in distributing their products through our integrated branch
We have increased our assets under management from
network in Singapore, Indonesia, Thailand and Malaysia. We are
$48 billion in 2010 to $56 billion in 2011 and opened 13 new
now one of the largest bancassurance providers in the Singapore
wealth management centres across Asia. This included a
and look to replicate this success across the region.
high-end Privilege Banking Centre in Shanghais Xin Tian Di
district an affluent and upscale shopping and entertainment
In 2011, we explored new ways to educate customers on the
hub for the well-heeled. Our Privilege Banking services in China
importance of insurance. One initiative we launched was to place
have raised the bar for local and foreign banks and we will
UOB insurance sales managers in our branches. Customers were
increase the breadth and depth of our offering in this strategically
receptive to this as it meant that as they were conducting their
important market.
banking they could also seek insurance advice in one location.

2011 in Review
Our Leadership in Cards

MasterCard is privileged to be a part of the continuing evolution Visa is honored to be part of such a long standing and successful
of the UOB Commercial cards portfolio. UOB has a strong partnership with UOB and looks forward to continued, and even
reputation as a leading provider of commercial payment solutions, greater, success in the future. Over the years, UOB and Visa have
helping businesses of all sizes optimize their expense management been instrumental in introducing innovative payment cards into the
processes, generate practical savings on business purchases and Singapore market, not least to the rapidly growing affluent segment.
manage cash flow. Commercial cards are central to a compelling With the number of these high net worth individuals expected to reach
expense management solution, and UOB have taken the innovative 129,000 by 2015, estimated assets of US$616 billion, and growing
step of offering their clients the ability to customise their cards sophistication and purchasing power, the UOB Visa Infinite card series
with the companys own logo. This enhances the appeal of UOBs is ideally placed to capitalize on this prestigious sector. UOBs support
already strong Commercial cards portfolio, by offering a natural and significant market presence, combined with the Visa Infinite card
extension of the customers brand identity, a source of pride for all range of exclusive rewards and privileges, offers one of the best
business owners. payment cards in Singapore a card specifically designed to meet
the discerning tastes of Singapores most wealthy.
Matthew Driver Elizabeth Buse

Division President, South East Asia Group President, Asia Pacific, Central Europe, Middle East and Africa
MasterCard Worldwide Visa
Customer Loans This year, with Chinas economy leading the global charge,
With 77 years of experience in helping consumers own their own UOB responded to strong demand for renminbi-denominated
home, we never underestimate the importance of having a robust deposit products by offering retail depositors Chinese Renminbi
loans book. In 2011, we helped customers around the region Offshore (CNH) currency for Fixed Deposits. Privilege Banking,
through the provision of more than $64.8 billion in consumer Privilege Reserve and Private Banking customers could deposit
loans. Whether it was loans for first-time home buyers, upgraders, larger amounts through a tailored CNH Maxiyield product.
renovators, downsizers or small businesses, we stood side-by-
side with our customers as they made, what was for many of Cards and Payments
them, their biggest financial decision. In 2011, we were again the leader for cards and payments
innovation and programmes. We remain Singapores number one
We remain a leader in the private residential loans market and, card issuer, are the only bank to issue all five payment brands and
in 2011, our loans performance outpaced that of the industry. hold 40% of the merchant base. We also reinforced our position
In all of our regional markets we reported increases in customer as the premier card issuer through our exclusive one-year
loans demand, with Singapore and Malaysia providing the largest tie-up with Marina Bay Sands delivering Southeast Asias most
contribution by volume. prestigious card-based dining destination programme.
We also explored new ways to help our customers expand their UOB cards also reinforced its leadership with the creation of
property portfolio. Today, UOB is one of the first local banks to the UOB Privilege Banking Card, UOB Privilege Reserve Credit
offer a financing scheme from Singapore for those looking to Card and the UOB Customisable Commercial card. Each new
purchase residential properties in London and Thailand. programme was designed to meet a specific customer segment
need that was underserved in the market. The UOB Customisable
Deposits Commercial Card for small and medium enterprises (SMEs)
In 2011, customers in all segments were faced with a low interest enables them to stand out and be identified through their own
rate environment. To meet our customers need for increased companys branded card.
returns and liquidity, we offered customers savings packages
that provided higher interest rates and more incentives when
they deposited additional funds with UOB.

2011 in Review
UOB Singapore customers were the first in the market to be able to withdraw
cash without a card through our innovative UOB Mobile application.
Mobile Banking to our reputation across the region as a leading bank for small
We continued to invest in our service and delivery channels businesses, is our ability to marry the efficiency of retail banking
to provide our customers with superior and differentiated with the depth of our commercial banking solutions.
banking experience.
The take up of two new product offerings introduced in 2011
In the fourth quarter of 2011, we created a new way for our once again demonstrated our ability to anticipate the needs of
customers to conduct their banking based on advances in mobile our customers. In 2011, we introduced a new business banking
technology. Our customers are now the first in Singapore to be foreign exchange booking hotline which gave customers instant
able to withdraw cash without an ATM card through our new access to preferential trading rates. This helped customers
UOB Mobile application. UOB Mobile has set a new standard for manage cross-border trading arrangements with increased
mobile banking in Singapore as customers can perform a wide confidence. We also improved our capabilities in the area of
range of financial transactions through their mobile devices insurance and this too was well received by our customers.
from checking accounts and transferring money, to paying bills
and checking deposit and foreign exchanges rates, to using Customer Service
calculators to check personal and home equity loans rates. The customer is at the heart of all we do at UOB. We believe in
building long-term relationships with our customers over many
This significant milestone was well-received by our customers generations. Over the years, we have worked to stand out in
with more than 120,000 downloads of our Apple-based mobile the industry by focusing on improving our internal processes
application within the first four weeks of launch. More than half of and investing in frontline training to deliver a superior
the customers went on to use the service a take-up rate well customer experience.
ahead of our targets. We will be extending this innovative service
to other mobile technologies and our regional markets. As testament to our service delivery model, we once again
excelled in the Singapore national Excellent Service Award (EXSA)
Business Banking by receiving the most number of awards for the banking and
The decision to create a separate Business Banking segment financial services sector. This is the third year in a row that we
within Group Retail two years ago has paid dividends for our have won more EXSA awards that any other bank in Singapore
business banking customers. Every customer interaction begins and the second consecutive year that we have produced The
with the principle that Your business is big to us and that we Association of Banks in Singapores (ABS) Service Excellence
will provide our customers with dedicated financial services to Champion the highest individual honour in the industry given for
which they otherwise would not have had access. A strong superior banking and financial service.
contributing factor to our business banking success in 2011, and

2011 in Review
On 21 November 2011, we launched a new

uniform for all frontline service personnel,
created by well known local Singapore
designer Wykidd Song. He drew inspiration
from the UOB logo, which stands for
security and unity. The colours, which
signify warmth, friendliness and confidence,
are qualities that our customers have come
to know and appreciate over our 77 years.
The new uniform will be worn by all staff
across our regional network in 2012.
We also achieved the coveted Singapore Quality Class Star enabled us to deepen our relationships with customers beyond
Award this year. We are the first bank in Singapore to be given transactional products to become an important partner in their
this prestigious award which is conferred upon organisations business success.
that demonstrate the highest standards of business excellence,
and it is benchmarked against international quality awards. Small and medium enterprises (SMEs) are often the foundation
of a nations economic growth. Our own heritage gives us
unique insight into the challenges SMEs face. In 2011, we
INSTITUTIONAL BANKING provided assistance to support their entrepreneurial endeavours.
The resilience of Asia came to the fore in 2011 as Asian In Singapore alone, 99% of all enterprises are SMEs and they
corporates sought new opportunities to build and to contribute more than 50% of the nations gross domestic
expand their businesses within the region. As a result, our product. Recognising the importance of SMEs to the Singapore
Commercial and Corporate customers turned to us to realise economy, we have been the leading provider of government
the opportunities that rising consumer demand and increased assistance scheme loans to local SMEs in terms of market share
intra-regional trade flows were creating in the region. and loan volume. The loans have helped local SMEs to expand
their operations overseas.
Deepening our customer relationships
With uncertainty being the only constant, our one-bank Just as Singapore SMEs have ventured overseas, so too have
approach gave our customers in the region the assurance they SMEs in the other markets explored regional opportunities.
needed to focus on running their core business. Our consistency In line with this, we have established Global Business
in service, access to diverse markets and our regional branch Development (GBD) units in all of our regional markets. These
network give our customers greater convenience in banking. units manage the complex regulatory, administrative and
Whether it was in providing a single-market financial solution or financing arrangements often associated with doing business
borderless banking options across multiple markets, customers across borders. In the last five years, our total overseas
were reassured that their needs and ambitions were understood financing for local enterprises increased by 151% reinforcing
and met regardless of where they were in the region. the commonly-held perception that Asias strength is borne
from its generations of successful traders who set out and
We improved our ability to provide financial solutions that delivered explored new markets.
flexible and seamless banking experiences. We reviewed our
own internal processes to find better ways of connecting with Our understanding of the differences and driving forces of Asias
our customers, to provide faster response times to their requests economies led us to enhance our Corporate Banking industry
and to deliver improved products and services. These changes specialisation and expertise across the region in 2011. Our ability

2011 in Review
Asias intra-regional trade flows were a driving force of our growth in 2011.
to anticipate market trends and to create customised solutions Trade and Commodity Finance (STCF) team. Companies in the
for our customers helped to deliver strong growth in top line energy, metals and agricultural sectors, often sectors that are
revenue and higher non-interest income within our Corporate the lifeblood Asian economies, were the most active in 2011.
Banking business. We have built strong relationships with clients ranging from
producers, national oil companies and international trading
Riding Asias growth opportunities houses to niche traders.
One of the most important trends in Asia has been the rise in
intra-regional trade which is estimated to account for almost To take advantage of increasing global foreign direct investment
half of all trade in Asia. Our regional expertise and integrated inflows into Asia, we were the first bank in Singapore to set up
platform place us in a unique position to support businesses a specialised Foreign Direct Investment (FDI) Advisory Unit. The
looking to capitalise on new trade flows. FDI unit provides a one-stop shop for foreign enterprises looking
to expand in and through Singapore. The FDI unit builds on
Our Transaction Banking business has been at the forefront of the success of the GBD unit and offers a range of services for
supporting customers as they seized these new opportunities. customers wanting to set up in Singapore. It guides customers
Our team of dedicated and experienced trade advisers and on the most efficient way to build a new business in Singapore
product specialists helped customers manage operational from company incorporation to borderless corporate and
risks and reduce exposure when conducting trade deals personal banking through our regional network. Among the key
internationally. Our long-term approach and our deep industry responsibilities of the unit is the forging of strategic partnerships
knowledge also enabled us to strengthen our customer with key industry bodies such as the Singapore Economic
relationships and to explore new opportunities in cash Development Board.
management and trade services. In 2011, we enhanced and
expanded our cash management product suite and as a result With the rise of China as an economic powerhouse, we also
won several large regional mandates. In 2012, we expect to identified a huge opportunity in providing renminbi (RMB)
strengthen our relationships with our customers even further cross-border settlement services in the region. Following
with the launch of a revamped global e-banking solution and market developments in China, we became one of the first
new, innovative and borderless cash management and trade foreign banks authorised by the Peoples Bank of China to offer
solutions. cross-border RMB trading accounts, RMB financing solution
structure options and hedging of RMB risks and exposures.
The exceptional dynamism of international trade into and across We put in place the product solutions and matched these with
Asia and the demand for commodities in emerging market deep-industry expertise to handle, to structure and to finance
economies also created new opportunities for our Structured RMB trade transactions for our customers.

2011 in Review
We supported numerous syndicated loans across the Asia Pacific region in 2011.
Tapping capital markets GLOBAL MARKETS AND INVESTMENT MANAGEMENT

In 2011, we made solid progress in our Investment Banking
Global Markets and Investment Management (GMIM) is involved
business. We delivered our largest increase in market share in the
in managing the banks liquidity, investment, trading and market
Singapore dollar bond market and were ranked among the top
making of a wide array of financial instruments, as well as
five book runners in Singapore in 2011.
providing financial risk management solutions and investment
opportunities for our customers.
We were lead manager in a number of deals including the UOB
$1 billion subordinated tier-2 capital bond issue, the Ascott
In 2011, Global Markets, a division of GMIM, concentrated
Capital Pte Ltd $200 million bond issue and the Henderson
on providing advisory services to corporate customers and
Land MTN (S) Pte Ltd $200 million bond issue. We were also
manufacturing structured products for retail customers.
the sole lead manager for the GuocoLand Ltd $208 million bond
issue and jointly lead managed several Singapore Housing and
Our Corporate Treasury and Advisory team worked closely with
Development Board bond issuances. We have also established
our Group Wholesale team to provide customers with solutions
expertise to originate and to structure local currency fixed
to manage foreign exchange and interest rate risk through
income products in Thailand.
spot, forward and derivatives or exotic derivative structuring. In
August 2011, we started a new Fixed Income, Currencies and
We enjoyed a healthy pipeline of loan syndication deals across
Commodities (FICC) team and expanded our capabilities to
Asia Pacific. We also arranged syndicated loans for financial
enable customers to manage their commodity risk exposure in
institutions, successfully closing several transactions originating
response to rising customer demands amid market volatilities.
from Malaysia, India and Korea.
The Structured Products and FICC teams also provided

We believe that Asias resilient economic environment will
investment ideas and products to sophisticated and retail
continue to generate more regional trade opportunities.
customers. Our structured products remain a popular choice
UOBs strong regional presence and expertise in commercial,
of investment, recording strong sales growth in the first half of
corporate and transaction banking, cross-border settlement
2011. In the fourth quarter of the year, we were the only local
and cash management services, trade financing, together
bank offering 100% principal guaranteed structured deposits in
with our long-standing client relationships in China and
the Singapore market despite the low interest rate environment
Southeast Asia, place us in a unique position to capture these
which compressed the profit margins for such products.
business opportunities.
This reinforced our commitment to providing a comprehensive
suite of structured products.

2011 in Review
Gold was an attractive investment option for our customers in 2011.
The gold market continued to be active in 2011 as market In China, Ping An UOB Fund Management Company Limited,
uncertainties generated increased customer interest in gold a joint venture between UOBAM, China Ping An Trust Co., Ltd.
products. We remained the only local bank in Singapore to offer and Sanya Yingwan Tourism Co., Ltd. successfully launched
a comprehensive range of gold investment products including its inaugural fund in August 2011, the Ping An UOB Industry
buying and selling of gold bars and bullion coins, gold certificates Leaders Equity Fund (the Fund). The fund was ranked among
and gold savings account. the top five equity fund launches in terms of funds raised among
more than 80 equity funds launched in mainland China. The
Through our subsidiary UOB Bullion and Futures Limited fund was distributed widely in China to mainland Chinese retail
(UOBBF) we offered customers access to trading in a wide range and institutional investors as well as qualified foreign institutional
of futures and options instruments such as major currencies, investors. It was recognised in Moneyweeklys 2011 Most
interest rates and commodities. In late 2010, UOBBF obtained Potential Fund Companies in China and Hexun.coms 2011 Most
trading memberships in Eurex, New York Stock Exchange Liffe Growth Potential Fund Companies in China.
and Euronext Paris. In 2011, we began providing customers with
direct access to these exchanges, reducing latency and allowing
greater trading opportunities. UOBBF also became a clearing BUSINESS SUPPORT
member with Singapore Mercantile Exchange in 2011 and From the systems which IT develops and manages, to the people
provides customers the opportunity to arbitrage against other we hire and train to run our business, our commercial success is
commodity exchanges. dependent on our teams working with one other for the benefit of
our customers and shareholders.
UOB Asset Management (UOBAM) offers global investment
management expertise to individuals, institutions and In 2011, we made progress in several key initiatives that will
corporations through retail unit trusts, exchange-traded funds generate significant improvements to the way we operate.
and customised portfolio management services. In 2011,
UOBAM was named Best Onshore Fund House (Singapore) at Group Technology and Operations
the AsianInvestor Investment Performance Awards and Best Our Group Technology and Operations Division focused on
Retail House (Singapore) at the Asia Asset Management Best of delivering standardised technology and infrastructure for the
the Best Awards. This is the second time running we garnered Group, as well as on building efficient and flexible back-office
both awards. operations to support our regionalisation strategy. By delivering
a common operating platform, we will create better scale, lower
costs, facilitate faster time to market, provide consistent service
and strengthen our risk controls.

2011 in Review
In 2011, UOB received the most number of awards for the banking and financial services sector at the Singapore national Excellent Service Awards. We also produced for
the second consecutive year, The Association of Banks in Singapores Service Excellence Champion the highest individual honour in the industry given for superior banking
and financial service.
We are in the final stage of building our common operating activities to be reliably measured. This is in line with the Financial
platform across the region. All of our core systems in Stability Board Principles for Sound Compensation Practices and
Malaysia, Indonesia and Thailand are now being standardised. Implementation Standards. 1
This programme, when completed in 2013, will transform our
regional core banking platform and will provide an even stronger Competition for talent in the region will continue to be intense. We
foundation for us to compete as a premier regional bank. believe we have the people, programmes and processes in place
to attract new talent and to help existing employees to uncover
Group Human Resources their potential and to succeed in their careers with us.
This year, we continued to build a strong pipeline of talent at all
levels in the organisation. Investor Relations
UOB is one of the highest rated banks in the world. In 2011,
Our International Managers Programme, a unique 12-year Standard and Poors upgraded UOBs credit rating by one
programme which grooms talented managers to take on senior notch to AA-. The international rating agency also maintained its
leadership roles within the organisation, attracted high calibre long-term stable outlook on the bank, in line with Moodys
candidates from within the Group and across the industry. and Fitch Ratings. UOB was accorded B for financial strength
and Aa1 for long-term bank deposits by Moodys, and AA- for
Further, we extended our Management Associate Programme long-term issuer default rating by Fitch.
across the network to attract outstanding young people
in Singapore, Malaysia, Thailand, Indonesia and China. This year, our Investor Relations team held more than 400 investor
Our ten-week Internship Programme was enhanced to attract meetings, underscoring the investment communitys interest
young talent from universities and to give them an opportunity in UOB. Together with the Investor Relations team, our senior
to immerse themselves in the Bank and its myriad career management team also participated in various debt and equity
opportunities for ambitious and talented people. roadshows to US, Europe and Asia, as part of our ongoing efforts
to broaden and to deepen our investor base.
Our compensation programmes remain in compliance with
1
the regulations of various international and national financial For more information on this matter, please refer to the section of this annual
report on Pillar 3 disclosure requirements for remuneration.
institutions supervisory bodies. A bonus deferral policy is now in
place to align compensation with prudent risk-taking, taking into
consideration the time necessary for the outcomes of business

UOB in the Community
Our formal Corporate Social Responsibility (CSR) programme

focuses on three core areas where we feel we can make a positive
contribution to the community arts, children and education.
Arts in the Community

We believe that just as economic advancement is of great
importance to a nation, so too can the arts play a vital role in the
development of a society. Although the worlds of business and
the arts are often seen as separate, we view both as sources of
inspiration and ideas that can enrich the lives of people.
Our arts involvement has grown over the years and we are
most noted for our flagship programme, the UOB Painting Of
The Year Competition (POY). The POY serves to encourage
artists in the pursuit of their passion and provides them with the
opportunity to showcase their works to a wider section of the
community. In 2011 we celebrated the 30th anniversary of POY UOB Volunteers and the children from the LAA displaying their creations.
by extending the competition beyond Singapore and Thailand
to Malaysia and Indonesia, allowing more artists in the region to
showcase their talents. winner Gong Yao Min. We also share our collection with our
customers through displaying the pieces in our branches and
offices around the world. Selected UOB branches in Singapore
also feature a digital display of POY award-winning entries.
We also invest in arts programmes to bring the arts to those who

may otherwise not have an opportunity to create and enjoy art. In
2011, we partnered with The Little Arts Academy (LAA), an arts
school for the beneficiaries of The Business Times Budding Artists
Fund. Under this programme, we sponsored ten underprivileged
children to attend visual arts classes for a year. We also supported
NorthLight School through providing bursaries for needy students
who excelled in visual arts. In Malaysia, we sponsored the
Pertandingan Seni Lukis & Seni Reka, a nation-wide painting
competition for upper-secondary school students organised by
the Malaysian Institute of Art for the second year.
Our long-standing support of local Asian artists was again

(From left to right) UOB Painting Of The Year winners Gong Yao Min (Singapore),
Ng Swee Keat (Malaysia), Suwannee Sarakana (Thailand) and Gatot Indrajati (Indonesia) recognised by the Singapore National Arts Council. This year we
with the winning work from Thailand. This work also won the Special Mention Prize. were named the Distinguished Patron of the Arts, the seventh
year we have been given this honour.
Beyond fostering new artistic talent through POY, we are also Our Commitment to Children and Education
passionate about preserving the history of Asian art through the We believe in helping disadvantaged children to develop
UOB Art Collection. We began to acquire art pieces in the early their potential through education and rehabilitation using art.
1970s and are now custodians of more than 1,500 works of art. In 2007, we launched the UOB Heartbeat Employee Volunteer
This annual report includes several pieces from our collection Programme as a way to raise funds for local charities operating in
including works from pioneer local artist Georgette Chen, Cultural the areas of arts, children and education. We have donated more
Medallion winners Tan Kian Por and Ong Kim Seng and POY than $2.5 million to these charities.

Funds raised through the UOB Heartbeat Run/Walk in

Indonesia, Malaysia and Thailand were also channeled towards
helping children:
In Indonesia we made donations to the Fostering Foundation

for Disabled Children (Yayasan Pembinaan Anak Cacat) in
Jakarta. We also sponsored health-related services for more
than 100 children from Pesantren YPI Raudhatul Mutaqqin
(YPI Raudhatul Mutaqqin Islamic Boarding School) and its
surrounding community.
In Malaysia we supported the Protect and Save The Children

Association of Selangor and Kuala Lumpur (P.S. The
Children) through various educational programmes such as
the Keeping Me Safe programme conducted in selected
primary schools in Kuala Lumpur. We also supported the
The annual UOB Heartbeat Run/Walk was held for the fifth time in 2011.
StART Society by funding its arts enrichment programme for
under-privileged children.
In 2011 alone, we raised more than $850,000 in Singapore In Thailand we purchased medical equipment for the
through the annual UOB Heartbeat Run/Walk. This money Neonatal Intensive Care Unit of the Charoenkrungpracharak
was given to four charities the AWWA School, Fei Yue Early Hospital in Bangkok. We also held our annual Royal Katin
Intervention Programme for Infants and Children (EIPIC), ceremony (Robe offering ceremony) and a merit-making
Rainbow Centre EIPIC @ Yishun Park and Very Special Arts ceremony at Wat Samuha Pradittharam in Saraburi province,
Singapore (VSA) that help children with special needs. and made donations of THB 1 million to Wat Samuha
UOB was awarded the Community Chest Special Events
Pradittharam and THB 100,000 each to Wat Samuha
Platinum Award in 2011 for our contribution towards the
Pradittharam School and Wat Saohiwimolwitayanukul
community in Singapore.
School for educational facilities.
In China, we supported the Right To Play China, a non-profit

organisation which helps disadvantaged children to develop their
potential through educational programmes, sports and play.
Our Volunteers
Volunteering is something we encourage of all of our people and
we grant each employee up to two days each year to participate
in volunteer activities.
In Singapore, our employees participated in various activities

organised by the Bank in support of our beneficiaries VSA, LAA
and AWWA School. They also volunteered at the beneficiaries
programmes such as VSAs weekly classes, holiday workshops
and childrens exhibition. Fifty of our volunteers also represented
the Bank in this years Singapore National Day Parade. With
finance playing such an important role in Singapores economic
success, UOB was asked to be one of six financial institutions to
represent the economic defence of Singapore.
The UOB National Day Parade contingent standing tall and proud.

Support in Times of Disaster

Employees from across the UOB network came together
under the Puen-Chuay-Puen (Friends-Helping-Friends)
campaign to raise more than S$160,000 to help colleagues
in Thailand affected by the floods in late 2011. We also
provided additional assistance to our Thai employees
through such actions as interest-free staff loans, earlier
salary payments and staff loans moratoriums.
Despite being affected themselves, our Thai colleagues

showed their own kindness and generosity of spirit by helping
other flood victims. United Overseas Bank (Thai) employees
Dr Wee Cho Yaw receiving the Distinguished Service Order award from Dr Tony Tan, worked with the Thai Red Cross to donate supplies to
President of the Republic of Singapore.
help people in the southern part of Thailand. Employees
in Thailand also participated in local relief efforts, including
blood donation and packing of sand bags.
Our Chairman Dr Wee Cho Yaw was awarded the Distinguished
Service Order at the National Day Awards in 2011 in recognition Customers of United Overseas Bank (Thai) also received
of his contributions to the community and to education. Dr Wee help including some fee waivers, special assistance loans
has served as Chairman or President in various community and deferred payment schemes. Our SME customers were
organisations and he is also Vice-Chancellor of the Nanyang offered loan extensions of up to six months.
Technological University.

Corporate Governance
INTRODUCTION ensuring true and fair financial statements;

monitoring the Groups financial performance;
UOB is committed to upholding good corporate governance
determining the Banks capital/debt structure;
standards and is guided in this regard by:
setting dividend policy and declaring dividends;
Guidelines on Corporate Governance for Banks, Financial approving major acquisitions and divestments;
Holding Companies and Direct Insurers issued by the reviewing the Banks risk management framework;
Monetary Authority of Singapore in 2005 and amended in setting company values and standards; and
2010 (MAS Guidelines); performing succession planning.
Banking (Corporate Governance) Regulations 2005 as
amended in 2007 and 2010 (Banking Regulations); The Board has delegated certain functions to five board
Code of Corporate Governance 2005 (Code); and committees, namely, the Nominating Committee (NC),
Singapore Exchange Securities Trading Limited Listing Manual Remuneration Committee (RC), Audit Committee (AC), Executive
(SGX-ST Listing Manual). Committee (EXCO) and Board Risk Management Committee
(BRMC). Membership and details of the board committees are
set out on pages 38 to 41.
CONDUCT OF AFFAIRS
The Boards main duties and responsibilities are: The Board meets at scheduled quarterly meetings and may also
meet whenever there is urgent business to deal with. Directors
providing strategic direction; who are unable to attend a meeting in person may participate via
providing entrepreneurial leadership and guidance; telephonic and/or video conference or communicate his views
putting in place an effective management team; through another director or the company secretary.
evaluating the performance of the Chief Executive Officer
(CEO) and senior management; The attendance record of directors at the Board and board
approving business plans and annual budgets; committee meetings in 2011 is set out in the table below.
Number of meetings attended in 2011

Board Risk
Board of Audit Nominating Remuneration Executive Management
Name of director Directors Committee Committee Committee Committee Committee
Wee Cho Yaw 4 3 3 5 4

Wee Ee Cheong 4 5 4
Ngiam Tong Dow 4 3 5 4
Wong Meng Meng 4 3
Yeo Liat Kok Philip 2 3 3 3
Cham Tao Soon 4 4 3 3 5 4
Lim Pin 1 2 1
(Retired on 29 April 2011)
Thein Reggie 4 4
Franklin Leo Lavin 2 0
(Appointed to the Nominating Committee
on 6 May 2011)
Cheng Jue Hiang Willie 4
Tan Lip-Bu 3 3
No. of meetings held in 2011 4 4 3 3 5 4

BOARD COMPOSITION The NC reviews the size and composition of the Board annually.
Having considered factors such as the complexity of the Banks
The Board comprises 11 members whose names are set out
business, its scale of operations and the operating environment,
below. More information on the directors can be found in the
the NC is of the view that a board size of between nine and 11
Board of Directors section of this Annual Report.
members would be suitable. Further, the NC has noted that,
collectively, the Board possesses the skills, experience and
Wee Cho Yaw Non-executive and non-independent
knowledge that are necessary for the discharge of its duties.
(Chairman)
Wee Ee Cheong Executive and non-independent
The NC also reviews the composition of the board committees
(Deputy Chairman and CEO)
annually and recommends the re-constitution of the committees
Ngiam Tong Dow Non-executive and independent
as may be necessary.
Cham Tao Soon Non-executive and independent
Wong Meng Meng Non-executive and independent
Yeo Liat Kok Philip Non-executive and independent CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Thein Reggie Non-executive and independent
Franklin Leo Lavin Non-executive and independent Dr Wee Cho Yaw is the non-executive Chairman of the Board.
Cheng Jue Hiang Willie Non-executive and independent He provides leadership to the Board, sees that meetings are
Tan Lip-Bu Non-executive and independent held as needed, and ensures that directors are given timely and
Hsieh Fu Hua Non-executive and independent comprehensive information to discharge their duties. He also
(Appointed on 16 January 2012) provides guidance and advice to Management drawn from his
vast experience acquired over more than 50 years as a banker.
The NC assesses the independence of directors annually. The Dr Wee Cho Yaw is eligible for re-appointment yearly subject to
process includes the use of a questionnaire. Directors are the approval of the regulatory authority.
considered independent if they are independent of management
and substantial shareholders and are free from any business Mr Wee Ee Cheong, the son of Dr Wee Cho Yaw, is the CEO of
relationship that could materially interfere with, or be reasonably the Bank. He is also the Deputy Chairman of the Board. Mr Wee
perceived to materially interfere with, the exercise of their Ee Cheong, who is assisted by senior management committees,
unfettered and independent judgement. With effect from the is responsible for the day-to-day running of the Bank. The senior
2012 AGM, a director who has served on the Board for nine management committees are set out on page 42.
continuous years will no longer be regarded as independent
under the Banking Regulations. The MAS Guidelines recommend that where the Chairman
and CEO are related by close family ties, a bank may
Dr Wee Cho Yaw is a substantial shareholder of the Bank and is appoint an independent non-executive director to be the
not independent. Mr Wee Ee Cheong is a substantial shareholder lead independent director whom shareholders can approach
and the CEO of the Bank, and is not independent. With effect if they have concerns which contact through the normal
from the 2012 AGM, Messrs Ngiam Tong Dow, Cham Tao Soon, channels have not resolved or for which such contact is
Wong Meng Meng and Yeo Liat Kok Philip will not be regarded inappropriate. After deliberation, the NC is of the view that it
as independent as they have each served on the Board for more is not necessary to appoint a lead independent director as all
than nine continuous years. The NC is of the view that their length the directors may be approached for assistance. Further, the
of service has not compromised these directors objectivity and Bank has an established process for receiving and responding
commitment in discharging their duties as directors. to shareholders feedback and complaints.
Messrs Thein Reggie, Franklin Leo Lavin, Cheng Jue Hiang Willie,
NOMINATING COMMITTEE
Tan Lip-Bu and Hsieh Fu Hua are not substantial shareholders
and are independent of the substantial shareholders of the The NC comprises five members, a majority of whom (including
Bank. They have no management and business relationships the NC Chairman) are independent directors. The members
that would compromise their independence. None of them are Messrs Wong Meng Meng (Chairman), Wee Cho Yaw,
has served on the Board for nine continuous years. The NC Ngiam Tong Dow, Cham Tao Soon and Franklin Leo Lavin.
considers them independent because they have met the Mr Wee Ee Cheong is the alternate member to Dr Wee Cho Yaw
requirements under the Banking Regulations and have been on the NC.
observed to be independent-minded.

The principal responsibilities of the NC are: Organisational Structure and Succession

The NC nominates candidates for appointment to key senior
recommending the appointment and re-election/re-appointment management positions with the view to appointing candidates
of directors to the Board; who can contribute to the Banks ability to maintain its competitive
assessing the performance of the Board and each director; edge and keep pace with an evolving business environment.
assessing the independence of directors;
developing and implementing a development programme for The Bank has in place programmes by which candidates with
the continuous education of directors; potential are identified, developed and nurtured to fill senior
nominating candidates for key appointments such as the positions. Such development programmes are monitored
CEO, Chief Financial Officer and Chief Risk Officer; and regularly to ensure that they are relevant and effective in
performing succession planning. grooming the next generation of UOB bankers.
Appointment of New Directors Training and Development

The NC identifies and assesses nominations of new UOB has established an in-house continuous development
directors against a range of criteria including the candidates programme, which is overseen by the NC, for directors to
background, experience, skills, personal qualities and their gain the skills and knowledge to perform their roles effectively.
ability to commit time to the Boards activities. The NC is During 2011, directors attended in-house and external
responsible for identifying the right balance of independent and programmes. Through these programmes, the directors are kept
non-independent directors and for nominating directors with abreast of knowledge and skills relevant to the business of the
the right skills, knowledge and experience. Bank, and developments in global finance and best practices in
board oversight.
New directors are briefed on the key areas of the Banks
business. Each director is given an induction pack in the form
of a Directors Manual which consists of, among other things, REMUNERATION COMMITTEE
articles of directorship, terms of reference of the Board and its The RC comprises Messrs Wee Cho Yaw (Chairman),
committees, codes of conduct, policies, and other director Cham Tao Soon and Yeo Liat Kok Philip. Except for an incumbent,
governance matters. the Banking Regulations require the chairman of a remuneration
committee to be an independent director. The NC is of the
Annual Reviews view that Dr Wee Cho Yaw, the incumbent RC Chairman and a
The re-appointment and re-election of directors are subject to non-independent director, is the most appropriate person to chair
annual review by the NC. As provided in the Banks Articles of the RC given his vast experience.
Association, one-third of the directors retire from office by rotation
and are eligible for re-election at each AGM. Directors who The RCs responsibilities include:
are over 70 years of age are subject to annual re-appointment
under the Companies Act. New directors appointed by the ensuring that the Groups remuneration principles and
Board during the financial year submit themselves for re-election framework are aligned with prudent risk-taking and applicable
at the AGM. laws, regulations and guidelines;
establishing a remuneration policy and framework that is in line
The NC also performs an annual assessment of the performance with the strategic objectives and corporate values of the Group;
of each director and the Board as a whole. Directors are individually determining a level of remuneration that is reasonable and
assessed based on a range of criteria including their attendance appropriate to attract, retain and motivate directors and
record, skills, overall preparedness, participation, candour and senior executives;
clarity in communication, maintenance of relevant expertise, recommending fees for directors and reviewing the
strategic insight, financial literacy, business judgement and sense remuneration of senior executives; and
of accountability. Each NC member recuses himself from the reviewing and approving employee incentive programmes that
deliberation on his own performance. Factors included in the encourage overall employee and organisational performance.
evaluation of the Boards performance include strategic directions
given, quality of oversight of risk management processes and The RC administers the UOB Restricted Share Plan and the
internal controls, and the Banks performance. The NC also takes UOB Share Appreciation Rights Plan. Details of these long-term
into account the feedback received from other directors. incentive plans are contained in the Directors Report section of
this Annual Report.

Remuneration Policy While the MAS Guidelines and the Code recommend that the
Remuneration for employees is commensurate with their remuneration of the top five key non-director executives be
performance and contributions. The Groups remuneration disclosed, the Bank believes that such disclosure is not in its
framework is aimed at balancing short-term compensation with interest because of the highly competitive market for talent.
sustainable longer-term performance and prudent risk-taking Except for the CEO who is the son of the Chairman, no employee
while maintaining pay competitiveness. The remuneration is an immediate family member of a director or the CEO.
package comprises fixed salaries, variable performance
bonuses, benefits and long-term incentives. More information on the Groups remuneration policy, systems
and structures are contained in the Human Resource and
Key performance indicators, which are derived from the overall Pillar 3 Disclosure sections.
business strategy and applied to all business units, underpin
the Groups annual variable bonus plan. The achievement
against these performance indicators determines the overall AUDIT COMMITTEE
variable bonus pool of the Group. The variable bonus for each The members of the AC are Messrs Cham Tao Soon (Chairman),
business unit is then allocated according to the achievement of Yeo Liat Kok Philip and Thein Reggie. The AC oversees all matters
Group-wide, business-specific, governance and risk measures. relating to the:
Employees are paid variable bonuses based on the performance
of the Bank, the business unit and the individual. The RC reviews integrity of financial statements, internal and external audit
and approves the overall variable bonus payable to employees. plans and audit reports;
adequacy of internal accounting controls and material
Senior executives and employees whose actions have a material internal controls;
impact on the risk exposure of the Group are paid variable scope and results of internal and external audits;
bonuses subject to the Groups bonus deferral policy. Deferred quality of and any significant change in accounting policies
bonuses vest equally over three years subject to pre-determined or practices;
performance conditions. In the event that the performance adequacy of internal audit resources;
conditions are not met, unvested deferred bonuses may be cost-effectiveness, independence and objectivity of
fully or partially forfeited. During 2011, no deferred remuneration external auditors;
scheduled for vesting during the year was forfeited due to findings of Group Audit investigations which are significant;
performance adjustments. Details of the remuneration mix and transactions by interested persons; and
deferred remuneration for these employee groups can be found appointment and resignation of the Head of Group Audit.
in the Human Resource and Pillar 3 Disclosure sections of this
Annual Report. Accounting Policies and Practices
The AC reviews the financial statements of the Bank prior to
As a recruitment strategy, the Group may offer a one-time the announcements of the Banks results. The process includes
sign-on or guaranteed bonus to select key hires during their first verifying that accounting policies and practices adopted are
year of service. No new senior executive or employee whose appropriate and have been consistently applied, and ascertaining
actions have a material impact on the risk exposure of the Group whether any applicable accounting policy has been changed
received a significant sign-on or guaranteed bonus exceeding and whether judgements which have a significant impact on the
12 months of fixed pay during the financial year. There is also no financial results had been made during the reporting period.
special retirement plan, golden parachute or special severance
package for senior executives or employees. Investigative Powers
The AC has authority to investigate any matter within its terms of
Disclosure reference. Matters investigated may arise from internal processes
Directors fees and remuneration are disclosed in the Directors of the Bank such as an internal audit, or from a report made
Report section. During the year, no director was granted pursuant to the Banks whistle-blowing policy.
any share option or other equity incentive. Directors fees
are subject to shareholders approval and are shared among In the discharge of its duties, the AC is entitled to the full
directors. In sharing the fees, directors who have additional co-operation of Management, employees and the internal and
responsibilities as chairmen or members of board committees external auditors. Where necessary, the AC may also obtain
receive more. Each RC member abstains from deliberation on professional advice at the Banks expense.
his own remuneration.

External Auditors BOARD RISK MANAGEMENT COMMITTEE

During the year, the AC reviews the audit process and in
The BRMC comprises five members, a majority of whom
particular, the external audit plan, the audit reports submitted by
(including the BRMC Chairman) are non-executive directors. The
the external auditors and the non-audit services performed by the
members are Messrs Wee Cho Yaw (Chairman), Wee Ee Cheong,
external auditors. Where appropriate, the AC meets the external Ngiam Tong Dow, Cham Tao Soon and Tan Lip-Bu.
auditors in the absence of the internal auditors and Management.
The AC assesses the performance, effectiveness, independence The main responsibilities of the BRMC are:
and objectivity of the external auditors before recommending
the re-appointment of the external auditors to the Board. overseeing the establishment and operation of a robust and
In assessing the external auditors performance, the AC obtains independent risk management system to identify, measure,
feedback on the external auditors work from the internal auditors monitor, control and report risks on an enterprise-wide basis;
and Management and takes into account its own assessment of ensuring the risk management function is adequately and
the external auditors work. The AC also approves the terms of appropriately resourced;
engagement of the external auditors. reviewing the current risk profile, risk tolerance level and risk
strategy of the Group;
Having reviewed the external auditors work and non-audit reviewing the adequacy of risk management practices for
services provided and the fees they have received for non-audit material risks of the Group;
services, the AC is satisfied that the independence of Ernst & reviewing and approving risk measurement models,
Young LLP was not affected. The AC has nominated Ernst approaches and methodologies;
& Young LLP for re-appointment as external auditors at the reviewing the risks related to the Groups remuneration
forthcoming AGM. structure; and
appointing the Chief Risk Officer (CRO).
Internal Auditors
The AC also oversees the internal audit function of the Bank
INTERNAL CONTROLS
which is performed by Group Audit. This includes reviewing the
scope of audit for each year and monitoring the progress of The Bank has in place a comprehensive system of internal
audits. Functionally, the Head of Group Audit reports to the AC controls that safeguards its business. The Board oversees the
which approves his appointment, resignation or removal, while performance of the internal control systems with the assistance
administratively he reports to the CEO. The AC further ensures of the board committees.
that Group Audit is adequately resourced to discharge its
responsibilities. Further information on the internal audit function Group Audit
is set out below. The primary role of Group Audit is to provide independent
assessment of the adequacy and effectiveness of the Banks
system of risk management, controls and governance processes.
EXECUTIVE COMMITTEE Group Audit adopts the Standards for the Professional Practice
of Internal Auditing set by the Institute of Internal Auditors in its
The EXCO comprises five members, a majority of whom
audit of the Banks businesses and operations in Singapore and
are independent directors. They are Messrs Wee Cho Yaw
overseas. It also oversees the internal audit functions of overseas
(Chairman), Wee Ee Cheong, Ngiam Tong Dow, Cham Tao Soon
banking subsidiaries.
and Yeo Liat Kok Philip.
Group Audit develops its strategic audit plan using a risk-based
The main responsibilities of the EXCO are: approach. Audit projects are prioritised and scoped according
to Group Audits assessment of risks and the controls over the
assisting the Board to oversee the Banks performance and risk types. Significant issues are highlighted to the AC through
review medium and long-term business objectives; audit reports and during AC meetings. The strategic audit plan is
approving credit facilities, treasury and investment activities, reviewed annually.
and capital expenditure;
reviewing and recommending the budget and business plans; The heads of internal audit of overseas banking subsidiaries report
monitoring the Banks financial performance and reviewing the functionally to their respective audit committees and administratively
capital and debt structure of the Bank; and to their respective local CEOs. The subsidiaries internal audit
performing such other functions and exercising such other divisions provide monthly reports to the Head of Group Audit who
power and authority as may be delegated by the Board. is invited to attend their audit committee meetings.

Group Compliance Fair Dealing Guidelines Committee: oversees the delivery of

Group Compliance provides independent compliance support to fair dealing outcomes to customers. It approves action plans,
business units in Singapore and oversees the compliance teams policies, guidelines and practices aimed at achieving the fair
in countries and territories where UOB has a presence. dealing outcomes.
Human Resource (HR) Committee: oversees the Groups HR
Group Compliance works with business units within an established
strategy including developing the framework of the Groups
compliance risk management framework to identify, assess,
talent acquisition policies, talent development and management
mitigate and monitor regulatory compliance risks. Policies and
initiatives, compensation and benefits plans, employee
procedures are put in place to ensure that the Bank conducts its
engagement programmes and other key people decisions.
business in compliance with the law and observes industry best
practices. Group Compliance also monitors local and international Investment Committee: oversees the asset management,
regulatory developments that may have an impact on the Groups debt and equity capital market activities and the management
operations and advises Management accordingly. of the Groups funds.
Management Executive Committee: oversees the management
The Board and senior management are kept abreast of
of the Group, including capital and resource allocation.
compliance issues and regulatory developments through regular
It reviews and recommends the Groups strategic direction and
reports to the Board and the Risk and Capital Committee (see
ensures business activities are in line with strategic direction. It
Senior Management Committees below).
also reviews and approves Group-wide principles, framework
and policies.
Group Risk Management
Group Risk Management is responsible for putting in place the Performance Management Committee: oversees the overall
strategy, policies and processes to identify, measure, control and performance of the Group, country and business segments,
report risks of the Group. To perform its role effectively, it works including reviewing and monitoring against set budget/targets
with the Risk and Capital Committee (see Senior Management and key performance indicators. It approves changes to the
Committees below) and business and support functions to performance management policies and framework on income,
develop appropriate framework, strategies, processes and cost and internal capital allocation.
procedures to manage and monitor risks. It also oversees the
Risk and Capital Committee: oversees the overall risk
risk management functions of overseas banking subsidiaries
profile and capital requirements of the Group, as well as
and branches through a matrix-reporting structure. Details of the
the implementation of the Banks Internal Capital Adequacy
Banks risk management are set out in the Risk Management
Assessment Process.
and Pillar 3 Disclosure sections of this Annual Report.
Technology and Corporate Infrastructure Committee: oversees
The CRO, who oversees Group Risk Management, reports information technology (IT) and related infrastructure
functionally to the BRMC and administratively to the CEO. strategies, including approving the investments and
monitoring the progress of major IT initiatives of the Group.
Senior Management Committees
The following senior management committees assist the CEO in The Board reviews the reports from the AC and BRMC. Having
the day-to-day running of the Bank: made enquiries and based on its own assessment of the
Banks control environment, the Board, with the concurrence
Asset and Liability Committee: oversees the effectiveness of of the AC and BRMC, is of the view that the internal controls,
the Groups market and liquidity risk management structure, including financial, operational and compliance controls and risk
including approving policies, strategies and limits for the management processes, are generally adequate.
management of market and liquidity risk exposures.
Credit Committee: oversees the Banks credit and country risk ACCESS TO INFORMATION
management structure including the credit risk framework,
policies, people, processes, information, infrastructure, Directors have unfettered access to information and Management,
methodologies and systems. The Credit Committee approves and receive timely and detailed financial, risk management
credit applications, formulates credit policies, reviews credit and operational reports to facilitate informed discussions
portfolios and assesses credit risk profiles. during meetings. Directors also have access to the company
secretary whose responsibilities include advising the Board on
regulatory changes and best practices in corporate governance.
In discharging their duties, directors may seek independent
professional advice, if necessary, at the Banks expense.

Company Secretary As part of its efforts to use less paper, the Bank will provide the
The company secretary attends all Board, board committee annual report to shareholders in a compact disc as well as give
and general meetings and ensures that Board procedures and shareholders the option to request a copy of the annual report in
applicable regulations are complied with. She also facilitates print form. The annual report is also available on SGXNET and the
communications between the Board and Management and the UOB website.
induction of new directors, and generally assists directors in the
discharge of their duties. Feedback Management
The Board values all feedback from stakeholders and has
established clear channels for the receipt of feedback,
INTERESTED PERSON TRANSACTIONS including complaints. Procedures have been put in place
so that all complaints are investigated and dealt with in an
The Bank has in place, a procedure to monitor and disclose appropriate manner.
interested person transactions as required by the SGX-ST Listing
Manual. During the year, the Bank entered into the following Shareholders can give feedback and views at the AGM, or
interested person transactions within the meaning of Chapter 9 through the Banks Investor Relations unit. Where appropriate,
of the SGX-ST Listing Manual: the Bank is also open to meetings with investors and analysts.
Aggregate value Aggregate value

of all interested of all interested SHAREHOLDER PARTICIPATION
person transactions person transactions
during the financial year conducted under All shareholders are entitled to attend the general meetings of the
under review (excluding shareholders Bank. At each general meeting, shareholders can pose questions
transactions less mandate pursuant
and give comments to the Board and Management on relevant
than $100,000 and to Rule 920
transactions (excluding matters. A shareholder may appoint a proxy to attend and vote
conducted under transactions in his place. Investors who hold shares through nominees and
Name of shareholders mandate less than CPF investors who hold shares through custodian banks may
interested person pursuant to Rule 920) $100,000) vote via their nominee companies or custodian banks, or attend
the general meetings as observers.
UOL Group Limited UOB Travel Planners Nil
and its subsidiaries Pte Ltd, a wholly-owned
(UOL Group) subsidiary of UOB, sold
travel products and ETHICAL STANDARDS
services to and acted as
The core values of UOB are integrity, performance excellence,
hotel services agent for
the UOL Group. The total teamwork, trust and respect. These values are embodied in
value of these transactions a general code of conduct for employees. The Board and
was $986,371. Management emphasise the need to observe and uphold these
values at all times.
Haw Par UOB Travel Planners Nil
Corporation Limited Pte Ltd sold travel
and its subsidiaries products and services to Directors and employees are also guided by a code on dealing in
(Haw Par Group) the Haw Par Group. securities which prohibits dealings:
The total value of these
transactions was $308,010. on short-term considerations;
during the period commencing two weeks before the
announcement of the Banks financial statements for each of
COMMUNICATION WITH SHAREHOLDERS the first three quarters of the financial year and one month
UOB keeps shareholders informed of corporate developments before the announcement of the Banks full-year financial
through announcements posted on SGXNET and the Banks statements; and
website at uobgroup.com. Annual reports on the Banks if they are in possession of price-sensitive information.
performance and financial position are sent to shareholders at
least 14 days before the AGM. Quarterly financial results are The Bank has established a whistle-blowing policy which provides
a framework for any person to report any suspected wrongdoing
announced within 45 days from the end of each quarter and
through independent channels without fear of reprisal.
full-year financial results are announced within 60 days from the
All reports received are accorded confidentiality and investigated.
financial year-end. Financial results announcements are posted
The whistle-blowing policy is administered by Group Audit.
on SGXNET and the Banks website.

Capital Management
Our approach to capital management is to ensure that the Group Capital Adequacy Ratios (CAR)
and its regulated bank subsidiaries maintain strong capital levels We are required by the Monetary Authority of Singapore (MAS)
to support our businesses and growth, to meet regulatory capital to maintain Tier 1 and Total CAR of 6% and 10% respectively, at
requirements at all times and to maintain a good credit rating. Bank and Group levels. Our banking operations outside Singapore
are also required to comply with the regulatory requirements in
We achieve these objectives through an Internal Capital Adequacy the country of operation.
Assessment Process (ICAAP) whereby we continually monitor
and manage the Groups capital position over a medium-term The table below shows the consolidated capital position of the
horizon, involving the following: Group as at 31 December 2011 and 31 December 2010.
Setting of internal capital targets for the Bank and its regulated 2011 2010
bank subsidiaries, taking into account future regulatory $ million $ million
changes and stakeholder expectations;
Tier 1 capital
Forecast of capital demand for material risks based on Share capital 3,104 2,537
the Groups risk appetite, and evaluated across business Non-cumulative preference shares 1,317 1,317
segments and banking entities, including the Groups capital Innovative Tier 1 capital instruments 832 832
position before and after mitigating actions under adverse but Disclosed reserves 17,431 16,359
plausible stressed conditions; and Non-controlling interests 80 80
Goodwill/others (4,329) (4,328)
Availability and composition of different capital Deductions from Tier 1 capital (421) (435)
components, taking into account market development and Eligible Tier 1 capital 18,014 16,362
regulatory changes.
Tier 2 capital
We have in place a governance and process framework Cumulative collective impairment/others 950 936
embedded in our capital planning and assessment process. Subordinated notes 3,794 4,343
The Board Risk Management Committee assists the Board to Deductions from Tier 2 capital (421) (435)
oversee the management of risks arising from the business of the Eligible total capital 22,337 21,206
Group, while the Risk and Capital Committee oversees the overall
risk profile and capital requirement of the Group and ensures that Risk-weighted assets
the Banks ICAAP is in place. The Board and senior management Credit risk 116,423 92,326
team are updated quarterly on the Groups capital position. The Market risk 7,835 5,611
capital management plan, the contingency capital plan, as well Operational risk 9,320 8,952
as any capital management actions, are submitted to the senior 133,578 106,889
management team and/or the Board for approval.
Capital adequacy ratios (%)
The Bank is the primary equity capital provider to the Group Core Tier 1 11.9 13.3
entities. The investments made in Group entities are funded Tier 1 13.5 15.3
mainly by the Banks own retained earnings and capital issuance. Total 16.7 19.8
The Groups regulated bank subsidiaries manage their own
capital to support their planned business growth and to meet We have adopted the Basel II framework for the above
regulatory requirements within the context of the Groups capital computation in accordance with the requirements of MAS Notice
plan. Capital generated by subsidiaries in excess of planned 637. The approaches for the computation of risk-weighted assets
requirements is returned to the Bank by way of dividends. During can be found in the Risk Management and Basel II Pillar 3
the year, none of the subsidiaries faced any impediment in the Disclosure sections.
distribution of dividends.

Capital Management
Our capital is divided into two tiers: Dividend

Our aim is to continue to pay consistent and sustainable
Eligible Tier 1 Capital comprising paid-up ordinary share dividends to shareholders by balancing growth with prudent
capital, disclosed reserves, minority interest, qualifying capital management. Dividends are payable at least on a half-
instruments such as non-cumulative perpetual preference yearly basis. For the financial year ended 31 December 2011,
shares and hybrid capital securities, deducted for goodwill, the Board has recommended a final one-tier tax-exempt dividend
of 40 cents per ordinary share, bringing the full-year dividend
intangible assets and other regulatory adjustments; and
to 60 cents per ordinary share. This represents a payout of
$944.2 million, representing 41% of the Groups net profit of
Tier 2 Capital comprising qualifying subordinated notes and $2,327.0 million. The UOB scrip dividend scheme was not
other items, such as cumulative collective impairment and applied to any dividends paid or declared for this year.
revaluation gains on equity securities held as available-for-sale,
deducted for other regulatory adjustments. Share Buyback & Treasury Shares
Ordinary shares repurchased by the Bank are held as treasury
To ensure the overall quality of the capital base, MAS Notice 637 shares. These are recorded as a deduction against share capital
prescribes limits on the amount of non-equity capital instruments and may be sold, cancelled, distributed as bonus shares,
relative to the Total Capital base. A description of the key terms of or used to meet the obligations under employee long-term
the capital instruments included as eligible capital can be found incentive plans.
in Notes 12 and 19 of the financial statements. The analysis on
Group CAR can be found in the Management Discussion and During the year, we purchased 0.6 million ordinary shares for $8.8
million to meet the obligations under existing employee long-term
Analysis section.
incentive plans. There was no share buyback conducted in 2010.
The tabulation below shows the CAR of the major regulated Regulatory Changes
bank subsidiaries as at 31 December 2011, computed on The regulation and supervision of financial institutions is
a solo basis under the capital adequacy framework of the undergoing considerable changes after the global financial
respective countries. crisis. The Basel Committee on Banking Supervision (BCBS)
has since December 2009 released a series of proposals and
2011
consultation papers (Basel III) aimed to strengthen the global
Tier 1 Total
capital and liquidity standards, with the objective of promoting
CAR CAR
a more resilient banking sector. Over the last two years, there
% % is greater clarity on Basel III standards and various timelines for
implementation, though some proposals are yet to be finalised.
United Overseas Bank (Malaysia) Bhd 10.6 12.9
United Overseas Bank (Thai) The BCBS has left it to the respective jurisdictions to implement
Public Company Limited 15.5 16.7 these changes. On 28 December 2011, the MAS issued a
United Overseas Bank (China) Limited 24.2 25.5 consultation paper on the implementation of Basel III Capital
PT Bank UOB Indonesia 16.7 17.8 Standards for Singapore-incorporated banks. The public
consultation closed on 17 February 2012.
Capital Management Initiatives taken during the Year The MAS has taken the view that the capital requirements for
Tier 1 Capital Singapore-incorporated banks have to be set higher than the
In June 2011, the Bank issued 30.4 million new ordinary Basel III minimum requirements because they are systemically-
shares, representing $546.7 million in ordinary share capital, to important and have substantial retail presence. The higher capital
shareholders who had elected to receive new shares for the final requirements will further strengthen the ability of Singapore-
and special dividends for the financial year ended 31 December incorporated banks to operate under stress conditions and
will help protect depositors, reduce risks to the economy and
2010, under the UOB scrip dividend scheme.
safeguard financial stability. In addition, the MAS will require
Singapore-incorporated banks to meet the Basel III minimum
Tier 2 Capital capital adequacy requirements from 1 January 2013, two years
In April 2011, the Bank successfully raised $1 billion 3.45% ahead of the BCBS proposed 2015 timeline.
10-year fixed rate subordinated notes qualifying as lower
Tier 2 capital. Net proceeds from this issue were used to partially We believe the Group is well capitalised, and coupled with the
finance the exercise of redemption call on $1.3 billion upper phased-in timeline for implementation, is in a strong capital
Tier 2 4.95% subordinated notes in September 2011. position to meet the MAS revised requirements.

Risk Management
RISK MANAGEMENT OVERVIEW The day-to-day management of the UOB Group is delegated
to its senior management (Chief Executive Officer (CEO) and
Financial and non-financial risks are integral to the Groups
Senior Executives).
business. Our risk management strategy is targeted at ensuring
on-going effective risk discovery and achieving effective capital
The CEO forms senior management committees to assist in the
management. Risks are managed within levels established by
making of business decisions while balancing risks with return.
the management committees, and approved by the Board and
its committees.
The main senior management committees are the Management
Executive Committee (MEC), Asset & Liability Committee
The Groups risk management principles are:
(ALCO), Credit Committee (CC) and the Risk & Capital
Committee (RCC). These committees assist the BRMC in
Promotion of sustainable long-term growth through embracing
specific risk areas. Please refer to the Corporate Governance
sound risk management principles and business practices;
section in the annual report for information on the roles and
Continual improvement of risk discovery capabilities and
responsibilities of these committees.
establishment of appropriate value-creating risk controls; and
Focus on facilitating business development within a prudent,
The BRMC is also responsible for setting the overall risk capital
consistent and efficient risk management framework that
and Top-Down Risk Appetite statements for material risks faced
balances risks and returns.
by the Group. Senior management and the senior management
committees are responsible for delegating risk appetite limits by
The Group has a comprehensive framework of policies and
location, business lines, and/or broad product lines.
procedures for the identification, measurement, monitoring and
control of risks. This framework is governed by the appropriate
Board and senior management committees. BASEL II FRAMEWORK
The Group has adopted the Basel II Framework and is compliant

RISK MANAGEMENT GOVERNANCE AND FRAMEWORK with the Monetary Authority of Singapore Notice to Banks
No. 637 Notice on Risk Based Capital Adequacy Requirements
An effective governance structure exists to ensure that the
for Banks incorporated in Singapore. The Framework aims to
Groups business activities are:
ensure the ongoing enhancement of risk management techniques
by banks to monitor and manage their risks, and to ensure proper
Conducted in a safe and sound manner and in line with high
processes are undertaken by banks in determining the adequate
standards of professionalism and sound business practice;
amount of capital to be held in relation to their underlying
Consistent with the Groups overall business strategy and risk
risk profile.
appetite; and
Subjected to adequate risk management and internal controls.
The Group has adopted the Foundation Internal Ratings-Based
(FIRB) approach for its non-retail exposures and the Advanced
The Board of Directors (the Board) plays a critical role in
Internal Ratings-Based (AIRB) approach for its retail exposures.
the successful operation of the Group. The Board is chiefly
For Market and Operational risks, the Group has adopted the
responsible for setting corporate strategy, reviewing managerial
Standardised Approach (SA).
performance and maximising returns for shareholders at an
acceptable level of risk, while preventing conflicts of interest and
The Group has a framework to ensure that there is a process
balancing competing demands on the Group.
to assess it has sufficient capital to support its activities. This is
the Internal Capital Adequacy Assessment Process (ICAAP)
The Board is supported by the Board Risk Management
framework. The ICAAP process is reviewed periodically to ensure
Committee (BRMC), Executive Committee, Audit Committee,
that the Bank will remain well capitalised after considering all
Nominating Committee and Remuneration Committee.
material risks. Stress testing is also conducted to determine
The BRMC assists the Board in the oversight of risk management
capital adequacy in stressed conditions.
policies, process and procedures.

Risk Management
The Group has established a Risk Appetite framework. The Risk Industry limits ensure that any adverse effects arising from an
Appetite is the amount of risk the Group is able and willing to industry-specific risk event is confined to acceptable levels.
take/tolerate in pursuit of its business objectives. The objective
of setting risk appetite is not to limit risk taking but to ensure Country risk
that the Groups risk profile is aligned to its business strategy. Country risk is managed within an established framework that
The Risk Appetite is approved by the BRMC, and allocated to includes setting of limits for each country. Such limits are based
the various business units by senior management and senior on the countrys risk rating, economic potential measured by its
management committees. GDP, as well as the Groups business strategy.
The Groups Pillar 3 Disclosure Policy addresses the disclosure Credit stress test
requirements as laid out in MAS Notice 637. Credit stress testing is an integral part of the Groups credit
portfolio management process. These are conducted periodically
and allow the Group to assess the potential losses arising from
CREDIT RISK exceptional but plausible adverse events. Remedial actions such
Credit risk policies and processes as exposure reduction, portfolio rebalancing, hedging and review
Credit policies and processes are in place to manage credit risk of credit acceptance guidelines are taken when necessary.
in the following key areas:
Settlement risk
Credit approval process The Groups foreign exchange-related settlement risk has
To maintain independence and integrity of the credit approval been significantly reduced through our membership in the
process, the credit approval function is segregated from credit Continuous Linked Settlement (CLS) scheme. This scheme
origination. Credit approval authority is delegated through a risk- allows transactions to be settled irrevocably on a delivery-versus-
based Credit Discretionary Limits (CDL) structure that is tiered payment basis.
according to the borrowers rating. Delegation of CDL follows a
stringent process that takes into consideration the experience, Credit exposures from foreign exchange and derivatives
seniority and track record of the officer. All credit approval officers Pre-settlement limits for foreign exchange (FX) and derivative
are guided by credit policies and credit acceptance guidelines. transactions are established using the Potential Future Exposure
Approval of consumer and small business loans is guided by (PFE) approach. This approach takes into consideration
product programmes. These credit policies, guidelines and the transaction currency and tenor to address the credit risk
product programmes are periodically reviewed to ensure their exposures arising from adverse market movements.
continued relevance.
For internal risk management, master agreements such as
Credit risk concentration International Swaps and Derivatives Association (ISDA)
A risk-sensitive process is in place to regularly review, manage and agreements and Credit Support Annex are established with
report credit concentrations and portfolio quality. This includes active counterparties to manage credit risk arising from foreign
monitoring concentration and exposures by obligors, portfolios, exchange and derivative activities. Such agreements allow the
borrowers, industries and countries. Limits are generally set as a Group to cash-settle transactions in the event of counterparty
percentage of the Groups eligible capital base. default, resulting in a single net claim against or in favour of
the counterparty.
Obligor limits ensure that there is no undue concentration to
a group of related borrowers that may potentially pose a risk to As at 31 Dec 2011, in the event of a 2-notch downgrading of
the Group. UOBs credit rating, UOB would be required to post additional
collateral of $42.5 million with its counterparties.
Portfolio and borrower limits ensure that lending to borrowers
with weaker credit ratings is confined to acceptable levels. These For Internal Ratings-Based (IRB) purpose, the Group does not
limits are generally tiered according to the borrowers risk ratings. recognise ISDA netting. The Current Exposure Method is used to
estimate its FX and derivative exposures on a gross basis.

Risk Management
Wrong-way risk The Group provides for impairment of its overseas operations
Wrong-way risk is typically defined as a trading exposure to a based on local regulatory requirements for local reporting
counterparty that is adversely correlated with the credit quality purposes. Where necessary, additional impairment is provided
of that counterparty. Wrong-way risk may be general or specific. for to comply with the Groups impairment policy and
MASs requirements.
General wrong-way risk arises when the probability of default
of a counterparty is positively correlated with general market Group Special Asset Management
risk factors. The Bank has processes in place to identify and Group Special Asset Management (GSAM) manages the non-
report transactions that exhibit such characteristics to senior performing portfolios of the Group. GSAM Restructuring Group
management on a regular basis. proactively manages a portfolio of NPL accounts, with the
primary intention of nursing these accounts back to health and
Specific wrong-way risk arises when an exposure to a particular transferring them back to the respective business units. GSAM
counterparty is positively correlated with its probability of default. Recovery Group manages accounts that the Group intends to
In general, transactions with specific wrong-way risk will be exit in order to maximise debt recovery.
rejected at the underwriting stage.
Write-off policy
Non-performing accounts management A classified account that is not secured by any realisable
Delinquency monitoring collateral will be written off either when the prospect of a recovery
All delinquent accounts, including credit limit excesses, are closely is considered poor or when all feasible avenues of recovery have
monitored and managed through a disciplined process by officers been exhausted.
from business units and risk management. Where appropriate,
these accounts are also subject to more frequent credit reviews. Credit risk mitigation
As a fundamental credit principle, the Group generally does not
Classification and loan loss impairment grant credit facilities solely on the basis of the collateral provided.
The Group classifies its loan portfolios according to the borrowers All credit facilities are granted based on the credit standing of the
ability to repay the loan from its normal source of income. All loans borrower, source of repayment and debt servicing ability.
and advances to customers are classified into Pass, Special
Mention or Non-Performing categories. Non-performing loans Collateral is taken whenever possible to mitigate the credit risk
(NPLs) are further classified as Substandard, Doubtful assumed. The value of the collateral is monitored periodically. The
or Loss in accordance with MAS 612 Notice to Banks frequency of valuation depends on the type, liquidity and volatility
(March 2005). of the collateral value. The main types of collateral taken by the
Group are cash, marketable securities, real estate, equipment,
Upgrading and de-classification of a NPL account to Pass inventory and receivables. Policies and processes are in place to
or Special Mention status must be supported by a credit monitor collateral concentration.
assessment of the repayment capability, cash flows and financial
position of the borrower. The Group must also be satisfied that In extending credit facilities to small and medium enterprises
once the account is de-classified, the account is unlikely to be (SMEs), personal guarantees are often taken as a form of
classified again in the near future. moral support to ensure moral commitment from the principal
shareholders and directors. For IRB purpose, the Group does not
A restructured account is categorised as non-performing and recognise personal guarantees as an eligible credit risk protection.
placed on the appropriate classified grade depending on the
Groups assessment of the financial condition of the borrower Corporate guarantees are often obtained when the borrowers
and the ability of the borrower to repay based on the restructured credit worthiness is not sufficient to justify an extension of credit.
terms. A restructured account must comply fully with the
restructured terms in accordance with MAS 612 Notice to Banks To recognise the effects of guarantees under the FIRB Approach,
(March 2005) before it can be declassified. the Group adopts the Probability of Default (PD) substitution
approach whereby an exposure guaranteed by an eligible
guarantor will utilise the PD of the guarantor in the computation of
its capital requirement.

Risk Management
In general, the following eligibility criteria are considered before Internal Ratings-Based Approach
collateral can be accepted for IRB purpose: IRB rating system refers to the methods, processes, controls,
data collection and information technology systems that support
Legal certainty: The documentation must be legally binding the assessment of credit risk, the assignment of exposures to
and enforceable (on an on-going basis) in all relevant jurisdictions. rating grades or pools, as well as the parameterisation process
No material positive correlation: The value of the collateral for the various classes of exposure.
must not be signicantly affected by the deterioration of the
borrowers credit worthiness. Rating system governance
Third-party custodian: The collateral that is held by a The Group has established a credit rating governance
third-party custodian must be segregated from the custodians framework to ensure the reliable and consistent performance
own assets. of the Groups rating systems. The framework defines the roles
and responsibilities of the various parties in the credit rating
Credit exposures under Basel II process, including independent model performance monitoring,
Under Basel II, credit risk for the various asset classes may be annual model validation and independent reviews by Group
computed using a combination of (i) SA; (ii) FIRB Approach; Internal Audit.
and (iii) AIRB Approach. The Group has adopted the FIRB
Approach for its non-retail exposures and the AIRB Approach Rating structure
for its retail exposures. The Groups internal rating structure is illustrated below.
Internal Rating Structure
Large Corporate
Specialised
SME Bank
Lending Retail
Specialised Lending Sovereign
(CF, PF and SF)
(IPRE) a
Customer Risk
Borrower Risk Customer Risk Risk
Rating
Rating Rating Drivers
Expected Loss Rating b
16 Pass Grades Supervisory 15 Pass Homogenous

4 Default Grades Grades Grades Risk Pools
Derive Risk Estimates
Use of Internal Estimates
Credit Approval Stress Test Collections
Credit Review Limits Setting Risk-based

& Monitoring & Monitoring Pricing
a
The 20 rating grades structure applies to the Groups IPRE exposures, with the exception of UOB Thailand where the internal risk grades are mapped to five prescribed
supervisory grades.
b
Does not apply to Specialised Lending (IPRE).

Risk Management
Internal rating system Corporate asset class

The Groups internal rating system consists of statistical and The Group has developed models to rate exposures in the Large
expert judgement models. Corporate and SME asset classes. The rating structure consists
of two dimensions:
A statistical model is one whereby the risk factors and their risk
weights are determined using a statistical method (for example, Risk of borrower default: Customer Risk Rating (CRR) is the
logistic regression). Such models are developed for portfolios with standalone rating of a borrowers credit risk based on financial
sufficient internal historical loss data such as the SME portfolio. (quantitative) and non-financial (qualitative) factors. This is
derived from a comprehensive assessment of the borrowers
An expert judgement model is one whereby the risk factors financial strength, quality of management, business risks, and
and their risk weights are determined judgementally by credit the industry it operates in.
experts. Such models are developed for portfolios with limited or Transaction-specific factors: Expected Loss Rating is the
no internal historical loss data, such as the Bank and Sovereign rating of a facilitys risk based on the borrowers CRR, facility
asset classes. and collateral-specific factors such as the type and structure
of the facility, availability and type of collateral, and seniority of
All rating models are independently validated before they are the exposure.
implemented for use. They are also subject to annual reviews to
ensure that the chosen risk factors appropriately measure the The Groups internal rating grade structure for the Corporate
risks in the respective portfolios. asset class consists of 16 pass grades and 4 default grades.
The Large Corporate and SME models are mapped to the rating
The PD is an estimate of the likelihood that an obligor will default scale by calibration that takes into account the Groups long-term
within the next 12 months. An obligor is considered to have average portfolio default rate.
defaulted if:
Specialised Lending asset sub-class
the obligor is unlikely to pay its credit obligations to the Group Within the Corporate asset class, the Bank has four sub-classes
in full, without recourse by the Group to actions such as for Specialised Lending: Income Producing Real Estate (IPRE),
realising the security; or Commodities Finance (CF), Project Finance (PF) and Ship
the obligor is past due more than 90 days on any credit Finance (SF). Specialised Lending exposures are treated
obligation to the Group. separately from normal Corporate exposures. Such exposures
generally possess the following attributes either in legal form or
The Groups internal Corporate risk rating process provides economic substance:
a PD-based credit assessment of a borrower over a one-year
time horizon. the exposure is typically to an entity (often a special purpose
entity) which is created specifically to finance and/or operate
The rating represents the Groups assessment of the borrowers physical assets;
ability and willingness to contractually perform despite adverse the borrowing entity has little or no other material assets or
economic conditions or the occurrence of unexpected events. activities, and therefore little or no independent capacity to
Therefore, the Group uses a longer time horizon in the rating repay the obligation besides the income that it receives from
assignment process, although the time horizon used in PD the asset(s) being financed;
estimation is one year. the terms of the obligation give the Group a substantial degree of
control over the asset(s) and the income that it generates; and
While the Groups internal Corporate risk rating grades may the primary source of repayment of the obligation is the
show some correlation with the rating grades of External income generated by the asset(s), rather than the independent
Credit Assessment Institutions (ECAIs), they are not directly capacity of a broader commercial enterprise.
comparable or equivalent to the ECAI ratings.

Risk Management
IPRE Investment exposures adopting the SRW Method are subjected

The Group has developed the IPRE model to rate exposures in to the supervisory risk weights, while investment exposures
this asset sub-class. The internal risk grades are derived based adopting the PD/LGD Method are rated using the Groups
on a comprehensive assessment of the projects financial and internal Bank scorecard.
non-financial risk factors. The rating grade structure follows that
of the corporate asset class and consists of 16 pass grades and Retail asset class
four default grades. For Retail exposures, PD, Loss Given Default (LGD) and
Exposure At Default (EAD) parameters are estimated using
CF, PF and SF internal loss data covering a mix of economic conditions,
The Group has developed the CF, PF and SF scorecards to rate including downturns. A key principle of the PD, LGD and EAD
exposures in this asset sub-class. The internal risk grades are models is that the model outputs are calibrated to reflect a
derived based on financial and non-financial risk factors. The long-run, cycle-neutral average. Where internal loss data do
internal risk grades are then mapped to five prescribed supervisory not cover an appropriate mix of economic conditions and/or are
categories, each of which is associated with a specific risk weight. insufficient to provide robust risk estimates, the PD, LGD and
The five categories are Strong, Good, Satisfactory, Weak EAD models may incorporate internal and/or external proxies,
and Default. and where necessary, may be augmented with appropriate
margins of conservatism.
Sovereign asset class
The Group has developed an internal Sovereign scorecard to rate Probability of Default
exposures in this asset class. As there were insufficient internal PD is estimated using the long-run average of one-year default
default data, the scorecard took into account external default rates for obligors in a pool. Where internal default data used for
data from ECAIs. The scorecard has an internal rating grade estimation do not cover a mix of economic conditions (including
structure consisting of 15 pass grades. downturns), internal and/or external proxies are used to adjust
default rates to reflect a long-run, cycle-neutral average.
Bank asset class
The Group has developed an internal Bank scorecard to rate Loss Given Default
exposures in this asset class. As there were insufficient internal LGD measures the long-run default-weighted average rate of
default data, the scorecard took into account external default economic loss associated with a facility/pool should default occur.
data from ECAIs. The scorecard has an internal rating grade The definition of default in the LGD model is identical to that of
structure consisting of 15 pass grades. the PD model. Loss rates are estimated from historical workout
experiences, taking into account the timing and uncertainty of
Equity asset class recovery cash flows, direct and indirect costs associated with
The Group adopts the following approaches for its workouts, as well as the various post-default outcomes, such as
Equity investments: cures, full recoveries and liquidations.
Simple Risk Weight (SRW) Method for its Equity investment Where there are significant adverse dependencies between
portfolio; and default and recovery rates, LGD estimates are calibrated to
Probability of Default/Loss Given Default (PD/LGD) Method reflect economic downturns. In the event that internal workout
for its investments in Tier 1 and Tier 2 perpetual securities data are insufficient to fully reflect loss rates during economic
issued by banks. downturns, internal and/or external proxies are used to adjust
the loss rates accordingly.

Risk Management
Exposure At Default Qualifying Revolving Retail Exposures asset sub-class

EAD measures the expected gross exposure of a facility upon Qualifying Revolving Retail Exposures (QRRE) asset sub-class
default. The definition of default in the EAD model is identical to includes credit card exposures and unsecured credit lines that
that of the PD model. EAD comprises (i) the amount currently meet the following criteria stipulated by the MAS:
drawn; and (ii) an estimate of future drawings of available but
unutilised credit up to and after the time of default, known as the the exposure is revolving, unsecured, and uncommitted both
Credit Conversion Factor (CCF). contractually and in practice;
the facility is managed as part of a pool of similar exposures;
Since the amount currently drawn is known, the estimation of the exposure is to an individual and the aggregate QRRE
EAD involves the estimation of the CCF using realised CCF of exposure to the same individual is not more than $200,000; and
all defaulted facilities for a given risk pool, covering a sufficiently the volatility of loss rate is lower than that of the Other Retail
long period of time and different economic conditions. Where asset sub-class.
there are significant adverse dependencies between default
rates and CCFs, CCF estimates are calibrated to reflect QRRE are assessed and managed using a combination of
economic downturns. application and behavioural scorecards, PD, LGD and CCF
models, as well as internal credit policies and procedures.
Residential Mortgage asset sub-class
Residential Mortgage asset sub-class includes any credit facility Other Retail asset sub-class
(for example, housing loan, term loan and overdraft) secured Other Retail asset sub-class includes commercial properties,
against a mortgage of a residential property or properties which auto loans, share financing and any other retail exposures not
meet the following criteria stipulated by the MAS: classified as Residential Mortgage or QRRE. These exposures
fulfil the following criteria stipulated by the MAS:
the facility is extended to an individual, a group of individuals
or a non-individual entity that replicates the risk profile of the exposure is to an individual and managed as part of a pool
an individual; of similar exposures; or
the facility is managed as part of a pool of similar exposures; and the exposure is to a small business and the aggregate
the facility is not granted to a corporation, partnership, exposure to the small business is not more than $2 million. In
sole proprietorship or trust engaged in residential building, addition, the exposure is not managed individually but rather
development or management. as part of a pool of similar exposures.
Residential Mortgage exposures are assessed and managed Other Retail exposures are assessed and managed using the
using the Groups framework of credit policies, procedures and Groups framework of credit policies, procedures and the Retail
the Retail segmentation model that integrates the PD, LGD segmentation model which integrates the PD, LGD and CCF
and CCF models to discriminate exposures according to their models to discriminate exposures according to their borrower
borrower and transaction risks. and transaction risks.
Use of internal estimates

Internal ratings are used pervasively by the Group in the areas of
credit approval, credit review and monitoring, credit stress test,
limits setting, pricing and collections.

Risk Management
Credit exposures subject to supervisory risk weight under MARKET RISK

IRB Approach
Market risk is governed by the Asset and Liability Committee
The following credit exposures are subject to supervisory risk
(ALCO), which meets twice monthly to review and provide
weight under the IRB Approach:
directions on market risk matters. The Market Risk Management
(MRM) and Balance Sheet Risk Management (BSRM) Divisions
Equity investments (under SRW Method);
support the BRMC, MEC, RCC and the ALCO with independent
Specialised Lending (CF, PF, SF and UOB Thailands IPRE)
assessment of the market risk profile of the Group.
exposures; and
Securitisation exposures.
The Groups market risk framework comprises market risk
policies and practices, the validation of valuation and risk models,
Securitisation exposures
the control structure with appropriate delegation of authority
The Group has investments in collateralised debt obligations
and market risk limits. In addition, a new Product/Service
(CDOs) and asset-backed securities (ABSs) classified under
Programme process ensure that market risk issues identified
available-for-sale in its investment portfolio. Full provision has
are adequately addressed prior to the launch of products and
been made for the investments in CDOs. For ABSs, the short-
services. Management of derivatives risks is continually reviewed
fall between market value and carrying costs is deducted from
and enhanced to ensure that the complexities of the business are
reserves, and no provisions have been made for them. Securitised
appropriately controlled.
assets are valued at average bid prices sourced through brokers,
banks and independent third party pricing vendors. This is based
Overall market risk appetite is balanced at the Group, Bank
on the assumption that the asset can be sold at these bid prices.
and business unit levels with the targeted revenue, and takes
There is no change to the methods and key assumptions for
into account the capital position of the Group and Bank. This
valuing positions from the previous period. The subsidiary, UOB
ensures that the Group and Bank remain well-capitalised even
Asset Management, manages structured finance assets, such as
under stress conditions. The risk appetite is translated into risk
CDOs and ABSs as part of their asset management activities.
limits that are delegated to business units. These risk limits have
proportional returns that are commensurate with the risks taken.
Credit exposures subject to Standardised Approach
For exposures subject to the Standardised Approach, approved
Standardised Approach
ECAI ratings and prescribed risk weights based on asset class
The Group currently adopts the Standardised Approach for the
are used in the computation of regulatory capital.
calculation of regulatory market risk capital but uses internal
models to measure and control trading market risks. The financial
The ECAI used by the Group are Fitch Ratings, Moodys Investors
products warehoused, measured and controlled with internal
Service and Standard & Poors. ECAI ratings are mapped to a
models include vanilla FX and FX options, vanilla Interest Rate
common credit quality grade prescribed by the MAS.
(IR) and IR options, government and corporate bonds, equities
and equity options, and commodities.
Internal Model Approach

The Group adopts a daily Value-at-Risk (VaR) to estimate market
risk within a 99% confidence interval using the historical simulation
method. This methodology does not make assumptions on the
distribution of returns and the correlations between risk classes.
The method assumes that possible future changes in market
rates may be implied by observed historical market movements.

Risk Management
Group trading backtesting chart

(Hypothetical daily profit and loss versus VaR at 99% confidence interval)
Profit/Loss
($'000)
Hypothetical daily profit and loss ($'000)
8,000 VaR at 99% confidence interval ($'000)
6,000
4,000
2,000
(2,000)
(4,000)
(6,000)
(8,000)
(10,000)
31 Jan 11 28 Feb 11 31 Mar 11 29 Apr 11 31 May 11 30 Jun 11 29 Jul 11 31 Aug 11 30 Sep 11 31 Oct 11 30 Nov11 30 Dec 11
VaR estimates are backtested against profit and loss of the Group trading VaR for general market risk by risk class a
trading book to validate the robustness of the methodology. The
backtesting process analyses whether the exceptions are due to
model deficiencies or market volatility. All backtest exceptions are
tabled at ALCO with recommended actions and resolutions.
The new Basel market risk measures, Stressed VaR and

Interest Rate 58%
Incremental Risk Charge (IRC), have also been implemented Foreign Exchange 41%
as part of the controls and incorporated in the market risk Equity 1%
appetite limits in 2011. The Stressed VaR estimates the 10 day
holding period 99% confidence level potential loss, using
stressed market prices observed during the subprime crisis.
The IRC measures the migration and default risks of the corporate
bonds warehoused in the trading book at the 99.9% confidence
a
level over a 1-year period. Contribution from commodity risk is insignificant.
To complement the VaR measure, stress and scenario tests are

INTEREST RATE RISK IN THE BANKING BOOK
performed to identify the Groups vulnerability to event risk. These
tests serve to provide early warnings of plausible extreme losses The ALCO, under delegated authority from the Board, maintains
to facilitate proactive management of market risks. oversight of the effectiveness of the interest rate risk management
structure. The BSRM Division supports the ALCO in monitoring
The Groups daily VaR on 31 December 2011 was $4.8 million. the interest rate risk profile of the banking book. At a tactical
level, the Management Portfolio unit of the Global Markets and
Investment Management (GMIM) Sector is responsible for the
effective management of balance sheet risk in accordance with
approved balance sheet risk management policies.

Risk Management
The primary objective of interest rate risk management is to under different interest rate scenarios. This economic perspective
protect and enhance capital or economic net worth through measures interest rate risks across the full maturity profile of the
adequate, stable and reliable growth in net interest earnings balance sheet, including off-balance sheet items.
under a broad range of possible economic conditions.
Stress testing is also performed regularly to determine the
Exposure is quantified on a monthly basis using a combination adequacy of capital in meeting the impact of extreme interest rate
of static analysis tools and dynamic simulation techniques. Static movements on the balance sheet. Such tests are also performed
analysis tools include repricing schedules and sensitivity analysis. to provide early warnings of potential extreme losses, facilitating
They provide indications of the potential impact of interest rate the proactive management of interest rate risks in an environment
changes on interest income and price value through the analysis of rapid financial market changes.
of the sensitivity of assets and liabilities to changes in interest
rates. Interest rate sensitivity varies with different repricing The risks arising from the trading book, such as interest rates,
periods, currency and embedded optionality. Mismatches in the foreign exchange rates and equity prices, are managed and
longer tenor will experience greater change in the price-value of controlled under the market risk framework that is discussed
interest rate positions than similar positions in the shorter tenor. under the Market Risk section.
The table in Note 41(c)(i) to the financial statements on

page 153 represents the Groups interest rate risk sensitivity LIQUIDITY RISK
based on repricing mismatches as at 31 December 2011. The Group maintains sufficient liquidity to fund its day-to-day
Note 41(c)(ii) shows the change in Economic Value of Equity operations, meet deposit withdrawals and loan disbursements,
(EVE) at risk sensitivities for 100 basis points (bp) and participate in new investments, and repay borrowings. Hence,
200bp parallel rate shock to the banking book for major liquidity is managed in a manner to address known as well as
currencies (Singapore dollar, US dollar and Malaysian ringgit) unanticipated cash funding needs.
from major subsidiaries and branches. The reported figures are
based on the worst case of an upward and downward parallel Liquidity risk is managed in accordance with a framework of
movement of the yield curve. The repricing profile of loans and policies, controls and limits approved by the ALCO. These
deposits that do not have maturity dates are generally based policies, controls and limits enable the Group to monitor and
on the earliest possible repricing dates taking into account the manage liquidity risk to ensure that sufficient sources of funds
notice period to be served to customers. Loan prepayment is are available over a range of market conditions. These include
generally estimated based on past statistics and trends where minimising excessive funding concentrations by diversifying the
possible and material. There may be some differences in the sources and terms of funding as well as maintaining a portfolio of
assumptions across geographical locations due to variation in high quality and marketable debt securities.
local conditions.
The Group takes a conservative stance in its liquidity management
In the dynamic simulation process, both the earnings and by continuing to gather core deposits, ensuring that liquidity limits
EVE approaches are applied to assess interest rate risk. The are strictly adhered to and that there are adequate liquid assets
potential effects of interest rate change on NII are estimated by to meet cash shortfall.
simulating the possible future course of interest rates, expected
changes in business activities over time, as well as the effects of The distribution of deposits is managed actively to ensure a
embedded options. Embedded options may be in the form of balance between cost effectiveness, continued accessibility to
loan prepayment and deposit pre-upliftment. Changes in interest funds, and diversification of funding sources. Important factors in
rates are simulated using different interest rate scenarios such as ensuring liquidity are competitive pricing, proactive management
changes in the shape of the yield curve, including high and low of the Groups core deposits and the maintenance of customer
rates, as well as positive and negative tilt scenarios. confidence. Core deposits are generally stable non-bank
deposits, such as current accounts, savings accounts and fixed
In EVE sensitivity simulations, the present values for repricing deposits. The Group monitors the stability of its core deposits by
cash flows are computed, with the focus on changes in EVE analysing their volatility over time.

Risk Management
Liquidity risk is aligned with the regulatory liquidity risk Key Operational Risk Indicators are statistical data collected
management framework, and is measured and managed on and monitored by business and support units on an on-going
a projected cash flow basis. The Group is monitored under basis to facilitate early detection of potential operational control
business as usual, bank specific crisis and general market weaknesses. Trend analysis is carried out to identify systemic
crisis scenarios. Behavioural modelling is carried out regularly to issues that need to be addressed.
ensure that the cash flow requirements for business as usual
and crisis scenarios are realistic. Cash flow mismatch limits are A database of operational risk events and losses has been
established to limit the Groups liquidity exposure. The Group also established and corrective actions, where necessary, will be
employs liquidity early warning indicators and trigger points to taken to rectify the underlying root cause. The analysis of loss
signal possible contingency situations. trends and root causes of loss events helps in strengthening the
internal control environment.
Contingency funding plans are in place to identify liquidity crisis
using a series of warning indicators. Crisis escalation processes A Group Insurance Programme is in place to mitigate the risk of
and various strategies including funding and communication have high impact operational losses.
been developed to minimise the impact of any liquidity crunch.
A Product/Service Programme ensures that risks associated
Overseas banking branches and subsidiaries are required to with the introduction of new products and services are
comply with their local regulatory requirements. In the event identified, analysed and addressed prior to launch. The Product
that they are unable to source sufficient funds to meet the Sales Committee also reviews product suitability, product risk
financial obligation of their operations, the Groups Head Office in disclosures and reputation issues associated with the distribution
Singapore would meet such requirements. of retail investment products to individual customers. For online
products and services, extra care and precautionary measures are
The table in Note 41(d) to the financial statements on page 155 implemented to protect customers confidentiality and interests.
presents the maturity mismatch analysis of the Groups near and
long-term time bands relating to the cash inflow and outflows The Groups Outsourcing Policy and Framework ensures that
based on contractual maturity arising from the Groups activities. outsourcing risks are adequately identified and managed prior to
Behavioural adjustments were made on significant balance sheet entering into any new arrangements and on an on-going basis.
items that had actual maturity dates that differed substantially
from their contractual profile for the operations in Singapore, Effective business continuity and crisis management strategies
Malaysia and Thailand. and plans have been developed and tested to ensure prompt
recovery of critical business functions in the event of major
Behavioural modelling is carried out based on industry-approved business and/or system disruptions.
methodologies and reviewed regularly. Loans and deposits which
do not have maturity dates, and fixed deposits which are rolled over Legal risk is part of operational risk. Legal risk arises from
frequently, are generally estimated based on their past statistics or unenforceable, unfavourable, defective or unintended contracts;
trends. There may be some differences in the assumptions across lawsuits or claims; developments in laws and regulations; or non-
geographical locations due to variation in local conditions. compliance with applicable laws and regulations. Business units
work with the Groups legal counsel and external legal counsel to
ensure that legal risks are effectively managed.
OPERATIONAL RISK
Operational risk is managed through a framework of policies, Reputation risk is the adverse impact on earnings, liquidity or
processes and procedures by which business units identify, capital arising from negative stakeholder perception or opinion on
assess, monitor and mitigate their operational risks. the Groups business practices, activities and financial condition.
The Group has a framework for managing reputation risk.
Operational Risk Self Assessments involve identifying and
assessing inherent risks, as well as assessing the effectiveness An operational risk management training and awareness
of controls to mitigate the identified risks. Action plans to address programme is in place to facilitate on-going promotion of an
issues are documented and monitored via Operational Risk effective risk management culture.
Action Plans.

Human Resource
REMUNERATION The Group has also taken progressive steps towards risk-adjusted
performance metrics that take onto account the costs of capital.
Group risk-reward framework
The following diagram summarises the application of various
The Group risk-reward framework broadly sets forth the Groups
classes of performance metrics in the funding and distribution of
approach to managing risk and reward, and encapsulates
incentive plans.
the combined roles and actions of all business groups. The
framework allows for a flexible approach with both quantitative Economic profit
(includes cost of capital)
and qualitative methods being used to take into account the
various risk dimensions and their impact on performance and Return
(includes capital)
remuneration levers.
Profit
(includes costs)
Regulatory requirements and external
business environment
Revenue
Increasing complexity
Performance Levers Remuneration Levers

Performance metrics Remuneration structure Revenue Profit metrics Return metrics Economic profit
Pre-determined financial/ Adequate to attract and metrics used in used in used in metrics used in
non-financial retain staff
Bonus plans KPIs KPIs+funding KPIs KPIs+funding
Quantitative and qualitative Incentive programmes Share plans funding KPIs
Calibration and achievement Cash vs. equity, short-term vs.
of KPIs long-term
Remuneration governance
Organisational alignment Deferred rewards
Internal control and governance Matching rewards to time
The Remuneration Committee (RC) comprises three non-
culture horizon of risk executive directors, of which two are independent. The RC
members are prominent and highly-experienced members of
academia and industry who are familiar with the Groups business,
compensation policies and practices. The RC is equipped with the
Quantitative and qualitative approach
necessary expertise to take into account various factors, including
expected future prospects, performance, income stream, and
general business outlook in determining compensation practices
Risk dimensions which are appropriate for the Group. Details of the composition
of the RC and a summary of its key roles and responsibilities are
contained in the Corporate Governance Report section.
Organisational alignment lays the foundation for a culture of proper
internal controls and governance. The Group has historically Three meetings of the RC were convened during the year.
placed emphasis on prudent risk-taking and the building of robust Directors fees in respect of 2011 totalling $785,000 have been
sustainable businesses. As such, the Group has put in place proposed for the three directors of the RC. This amount includes
systems and processes to manage the various types of risk and the basic directors retainer fees as well as allowances for the
has cultivated a risk-sensitive culture over the years. Under the various board committees they serve on.
risk-reward framework, the Groups key incentive programmes
have been designed taking into account both the internal External consultants were engaged by management in 2009 and
risk dimensions (eg. financial risk, human capital risk, operational 2010 to develop a Group-wide short-term incentive programme
risk, etc.) as well as regulatory requirements and the external applicable to all employees except for commissioned salespeople
business environment. The performance and remuneration and employees covered under collective/union pay agreements.
levers work in tandem to incorporate and address various Separately, external consultants were also engaged by Group
aspects of risk while being consistent with regulatory and Human Resources to advise on the remuneration model for the
business requirements. Group Chief Executive Officer in 2010. Recommendations by the

Human Resource
consultants were presented to and approved by the RC. External The Group does not award guaranteed bonuses as part of
consultants have not been engaged to advise on remuneration in normal operations. However as an attraction/recruitment
respect of performance in 2011. strategy, sign-on bonuses and/or guaranteed bonuses may be
selectively offered to key hires, but only for the first year. No senior
During the financial year, the Groups remuneration policy executives or material risk takers hired during the financial year
and framework were reviewed for compliance with regulatory were awarded material sign-on bonuses or guaranteed bonuses
guidelines by internal auditors. exceeding 12 months of fixed pay.
Remuneration policy and processes There is no accelerated payment of deferred remuneration for
The remuneration policy is applicable Group-wide including employees leaving the Group other than in exceptional cases,
overseas subsidiaries and branches. It covers the remuneration such as death in service. Retiring and retired employees are
of non-executive directors and employees, including senior subject to the same performance conditions on their deferred
executives and material risk takers. Senior executives refer to remuneration as other employees in service. There are also no
the Principal Officers of the Group. Material risk takers include (i) special retirement plans, golden parachutes or special severance
employees (other than Group Principal Officers) at the corporate packages for senior executives and material risk takers.
grade of Managing Director; (ii) traders/dealers at Group head-
office and trading/dealing desk heads of regional subsidiaries; Key remuneration programmes and performance
and (iii) high-earning employees whose compensation exceed a adjustment mechanisms
pre-determined threshold. There are 29 Group Principal Officers The major components of variable remuneration in the Group
and 57 material risk takers covered under this disclosure. are cash-based variable bonuses under the global short-term
incentive (STI) plan and share-based awards under the long-
The objective of the Groups remuneration policy is to specify a term incentive (LTI) programme. While the remuneration
remuneration framework to attract, retain and motivate employees mix may differ across different job families and businesses
by remunerating competitively and appropriately, commensurate according to established industry norms, the proportion of
with their performance and contributions. The remuneration variable remuneration to total remuneration generally increases
framework further aims to align rewards to prudent risk-taking and with the respective employees seniority level, function/role,
balance short-term remuneration with longer-term performance. and performance. This ensures that variable remuneration is
The remuneration policy sets out the policies governing fixed effective in driving performance while balancing reward with
salaries, variable performance bonuses, benefits and share- prudent risk-taking.
based long-term incentives. The Group remuneration policy was
reviewed and approved by the RC in February 2011, with updates The Groups global STI plan aims to foster a pay-for-performance
on the alignment of group remuneration programmes to Financial culture and reward employees commensurate with the
Stability Board (FSB) compensation principles and standards, performance and return to shareholders delivered during the
including deferrals on bonuses. year. It is underpinned by a holistic set of key performance
indicators within a balanced scorecard framework incorporating
Employees in risk, compliance and financial control functions key performance indicators (KPIs) in the perspectives of
are remunerated independently of the performance of any financials, growth, risk management, processes, customers
business lines or business units they oversee to avoid and employees. Financial KPIs include measures on net profit,
conflicts of interest. Recommendations on the remuneration economic profit and capital, fee-based income and return on
of such employees take into consideration competitive market equity. The overall variable bonus pool of the Group is determined
levels for the respective job roles, overall performance of the by the achievement against these performance indicators, which
Group, achievement of operational KPIs in the respective are also cascaded across all business units. The variable bonus
risk, compliance or financial control functions, as well as on for each business unit is then allocated based on Group-wide
individual performance of the employees. performance as well as the achievement of business-specific
performance and other qualitative factors. Based on the
achievement of these KPIs, the bonus pools of the Group and the

Human Resource
business units may be increased up to a maximum of 30% in the In addition, for senior executives and selected managers, the
event of outperformance, or be reduced to zero in the event of Group has in place a share-based LTI programme comprising
underperformance. Downward adjustments to bonuses can also the UOB Restricted Share Plan and the UOB Share Appreciation
occur as a result of not meeting corporate outcomes in terms of Rights Plan. The objective of the LTI programme is to align the
risk/governance-related measures and standards or in instances interests of management to those of shareholders and focus
of non-compliance with internal protocols and guidelines. The participants on the sustainable longer-term performance and
variable bonuses recommended for employees, including senior financial strength of the Group. Under the plan, eligible participants
executives and material risk takers, is based on a combination are granted performance-contingent restricted shares and
of the performances of the Group, the business unit and the share appreciation rights. Subject to the achievement of future
individual. The RC reviews and approves the overall variable performance targets, 50% of the grants will vest on the second
bonus for the Group. anniversary of the grant while the remainder will vest on the third
anniversary. In the event of overachievement of the performance
Economic profit has been one of the measures used in targets, up to 130% of the target number of restricted shares and
remuneration since 2007. With effect from 2010, economic profit share appreciation rights granted may be vested to participants.
has become one of the Groups key determinants of performance. Conversely, in the event of underperformance, the grants may
At Group level, economic profit takes into account the Groups be partially or fully forfeited. The RC is the approval authority for
beta and market risk premiums; which in turn takes into account the UOB Restricted Share Plan and the UOB Share Appreciation
various risk factors such as country risk, liquidity risk, equity risk, Rights Plan.
reputational risk etc. High risk premiums will have the effect of
reducing economic profit, thus reducing the performance level The Group adjusts deferred remuneration (ie. deferred bonuses
and overall variable bonus of the Group. At the business unit and LTI) before vesting through performance-based malus
level, economic profit takes into account the cost of funds under arrangements described above. The Group may pursue claw
the banks funds transfer pricing framework which incorporates backs of deferred remuneration after vesting in the event of fraud,
liquidity risk premiums. A high liquidity risk premium will reduce misconduct or material misstatement of reported performance.
economic profit and result in a lower performance level and
variable bonus for the business.
The Groups bonus deferral policy covers all employees

regardless of role or seniority, with specific focus on the variable
bonus of senior executives, material risk takers and high
earners. The objective of the bonus deferral policy is to enhance
alignment of remuneration payout schedules to the time
horizon of risks and focus employees on sustainable longer-
term performance. Under the Groups bonus deferral policy,
deferrals ranging from 20% to 60% occur when the bonus
received by an employee is above a pre-determined threshold,
with the proportion of deferral increasing with the amount of
bonus received. Deferred bonuses will vest equally over three
years subject to pre-determined performance conditions. In the
event that such performance conditions are not met, unvested
deferred bonuses may be fully or partially forfeited. In the case
of the Group Chief Executive Officer who is an associate of
a controlling shareholder, half of the bonus deferral is in the
form of share-linked performance units that will vest equally
over three years subject to the achievement of pre-determined
performance conditions.

Pillar 3 Disclosure
In compliance with the requirements under Basel II Pillar 3 Summary of Risk Weighted Assets (RWA)
and the Monetary Authority of Singapore (MAS) Notice 637
Public Disclosure, various additional quantitative and qualitative RWA
disclosures have been included in the annual report under the Credit Risk $ million
sections of Capital Management, Risk Management, Human
Resource, Pillar 3 Disclosure, Group Financial Review and IRB Approach
Notes to the Financial Statements. This is to facilitate the Corporate 69,259
understanding of the UOB Groups risk profile and assessment of Sovereign 182
Bank 6,401
the Groups capital adequacy.
Residential Mortgage 6,567
Qualifying Revolving Retail 1,798
SCOPE OF APPLICATION Other Retail 1,545
Securitisation 35
In accordance with the accounting standards for financial Equity 14,426
reporting, all subsidiaries of the Group are fully consolidated from Total IRB Approach 100,213
the date the Group obtains control until the date such control
ceases. The Groups investment in associates is accounted Standardised Approach
for using the equity method from the date the Group obtains Corporate 7,006
significant influence over the associates until the date such Sovereign 83
significant influence ceases. Bank 246
Retail 4,580
However, for the purpose of computing capital adequacy Residential Mortgage 414
requirements at the Group level, investments in a subsidiary that Fixed Assets 2,215
carries out insurance business as an insurer are excluded from Other Exposures 1,666
the consolidated financial statements of the Group. In compliance Total Standardised Approach 16,210
with MAS Notice 637 on capital adequacy, such investments are
Total Credit Risk 116,423
deducted from eligible Tier 1 and Upper Tier 2 capital.
The transfer of funds or regulatory capital within the Group is

RWA
subject to minority shareholders and regulatory approval.
Market Risk $ million
Standardised Approach
Interest rate 4,625
Equity 14
Foreign Exchange 2,801
Commodity 395
Total Standardised Approach 7,835
RWA
Operational Risk $ million
Standardised Approach 9,320
Total RWA 133,578
IRB : Internal Ratings Based
Based on the Groups Total RWA, the Groups minimum capital

requirement as at 31 December 2011 is $13,358 million.

Pillar 3 Disclosure
CREDIT RISK EXPOSURES Credit exposures under Basel II
Counterparty credit risk exposures

Standardiseda FIRB AIRB
$ million $ million $ million
$ million
Corporate 7,733 88,375
Gross fair value of contracts 6,744
Sovereign and Bank 2,535 71,235
Netting effects
Retail 7,177 NA 62,256
Net fair value 6,744
Other (including
Collateral held
Equity, Asset
Financial Collateral
Securitisation,
Other
Fixed Assets) 5,668 4,724
Net credit exposure 6,744

Total 23,113 164,334 62,256
Analysed as:
Interest rate contracts 3,911 a
Amount under Standardised Approach refers to credit exposure where IRB
Foreign exchange contracts and gold 2,648 approach is not applicable, or portfolios that will eventually adopt IRB Approach.
Equity contracts 152 FIRB : Foundation Internal Ratings Based
Credit derivative contracts 18 AIRB : Advanced Internal Ratings Based
NA: Not Applicable
Precious metals and other commodity contracts 15
Credit exposures secured by eligible collateral, guarantees

Credit derivative exposures and credit derivatives
Notional Notional
amounts amounts $ million
bought sold Amount by which
$ million $ million total exposures
are covered by:
Own credit portfolio 252 eligible credit
Intermediation portfolio 30 30 collaterala protection
Total credit default swaps 282 30 Standardised

Corporate 442 19
Sovereign
Bank
Retail 400 79
Standardised Total 842 98
FIRB
Corporate 9,798 2,004
Sovereign 2,729
Bank 434 65
Retail NA NA
FIRB Total 12,961 2,069
Total 13,803 2,167
a
The group currently uses supervisory prescribed haircuts for eligible financial
collateral
NA: Not Applicable

Pillar 3 Disclosure
Credit exposures subject to Standardised Approach CREDIT RISK PROFILE

The following tables show the breakdown of exposures by RWA
Net
and exposure at default (EAD) using the respective internal
exposuresa
rating scale for the model applicable to the asset classes:
Risk Weights $ million
Large Corporate, SME and Specialised Lending (IPRE)

0% to 35% 5,590
Exposures
50% to 75% 7,088
100% and above 10,435
Exposure-
weighted
Total 23,113
average
a
Net exposures after credit mitigation and provisions Credit risk
RWA EAD weights
CRR Band $ million $ million %
Credit exposures subject to supervisory risk weight under
IRB Approach 19 46,703 69,674 67
10 16 18,231 11,746 155
Specialised Default 1,067
Lending Equity
Risk Weights $ million $ million Total 64,934 82,488 79
SME : Small and Medium Enterprises

0% to 50% 2,431 IPRE : Income Producing Real Estate
51% to 100% 2,535 CRR : Customer Risk Rating
101% and above 877 3,074
Specialised Lending (CF, PF, SF and UOB Thailands IPRE)
Total 5,843 3,074 Exposures
Exposure-
Securitisationa weighted
Risk Weights $ million average
Credit risk
0% to 50% 116 RWA EAD weights
51% to 100% CRR Band $ million $ million %
101% and above 3
Deducted 112 Strong 1,578 2,676 59
Good 1,589 1,780 89
Total 231 Satisfactory 994 815 122
Weak 164 62 265
a
Securitisation exposures purchased
Default 511
Total 4,325 5,843 74
CF : Commodities Finance
PF : Project Finance
SF : Ship Finance

Pillar 3 Disclosure
Sovereign Exposures Retail (Residential Mortgage) Exposures

Exposure- Exposure-
weighted Exposure-
weighted
average weighted
average Credit risk average
Credit risk RWA EAD weights LGD Undrawn
RWA EAD weights PD Band $ million $ million % % $ million
0.00% to 1.00% 2,646 33,782 8 11 2,255
19 40,954 1.01% to 2.00% 931 5,483 17 10 44
10 15 182 439 41 2.01 to 99.99% 2,878 8,834 33 11 101
Default NA Default 113 227 50 15
Total 182 41,393 Total 6,567 48,326 14 11 2,400
Bank Exposures Retail (QRRE) Exposures

Exposure- Exposure-
weighted weighted Exposure-
average weighted
average
Credit risk average
Credit risk RWA EAD weights LGD Undrawn
RWA EAD weights PD Band $ million $ million % % $ million
0.00% to 1.00% 268 2,204 12 44 642
19 5,230 28,041 19 1.01% to 2.00% 119 456 26 44 171
10 15 1,171 1,801 65 2.01 to 99.99% 1,376 1,395 99 64 144
Default NA Default 35 31 114 73
Total 6,401 29,842 21 Total 1,798 4,086 44 51 957
QRRE : Qualifying Revolving Retail Exposures

Equity (PD/LGD Method) Exposures
Exposure-
Retail (Other Retail) Exposures
weighted
average Exposure-
weighted Exposure-
Credit risk
average weighted
RWA EAD weights Credit risk average
CRR Band $ million $ million % RWA EAD weights LGD Undrawn
PD Band $ million $ million % % $ million
19 1,818 1,174 155
10 16 981 246 399 0.00% to 1.00% 449 5,370 8 12 886
Default NA 1.01% to 2.00% 125 895 14 12 167
2.01 to 99.99% 901 3,469 26 16 388
Total 2,799 1,420 197 Default 70 110 64 35
PD : Probability of Default Total 1,545 9,844 16 14 1,440

LGD : Loss given Default

Pillar 3 Disclosure
Expected Loss and Actual loss by asset class Equity Exposures In The Banking Book
Actual loss consists of impairment loss allowance and write-off The following table shows the value of the Equity exposures in
to the Groups income statement for the financial year ended the banking book:
31 December 2011.
IRB Approach IRB Approach
Expected (SRW) (PD/LGD)
Lossa Average Average
(as at 31 risk risk
December EAD weights EAD weights
Actual loss 2010) $ million % $ million %
Asset Class $ million $ million
Listed securities 1,328 300 1,073 177
Corporate 53 491 Other equity
Sovereign holdings 1,746 400 347 213
Bank 17
Retail 42 192 Total 3,074 1,420
Total 95 700 Total Equity exposures that were deducted from capital amounted
to $686 million.
a
Excludes defaulted exposures.
Gains and losses

In 2011, we observed higher recoveries and write-backs in Revaluation gains Realised
the credit portfolio which resulted in lower actual loss in 2011 on equity eligible gains/ (losses)
compared to 2010. as Tier 2 capital during the period
$ million $ million
Comparison of actual loss and expected loss by asset class
Expected Loss (EL) is the estimated credit loss from defaults Total 152 (56)
over a one-year horizon. EL is the product of PD, LGD and
EAD. A comparison of actual loss and expected loss provides
an indication of the predictive power of the IRB models used by
the Group. However, they are not directly comparable due to the
following reasons:
EL as at 31 December 2010 is a measure of expected credit

loss based on the credit exposure as at that date. On the other
hand, impairment loss allowance and write-offs are accounting
entries relating to a fluctuating portfolio over the course of the
financial year. Moreover, write-offs may relate to defaults from
prior years.
EL is estimated based on non-default exposures only, while

impairment loss allowance is an accounting estimate of likely
loss from defaulted exposures. Write-offs are recorded on
defaulted exposures when no further recovery is possible.

Pillar 3 Disclosure
REMUNERATION DISCLOSURES Breakdown of long-term remuneration awards

Material
For the year ending 31 December 2011, 29 senior executives and
Senior risk
49 material risk takers have received variable remuneration.
executives takers
Category % %
Breakdown of remuneration awarded to senior executives
in the current financial year Change in deferred
remuneration paid out in the
Senior executives current financial year +67 +113
Category of remuneration Unrestricted Deferred
% % Change in amount of
outstanding deferred
Fixed Cash-based 32 remuneration from the
Shares and share-linked previous financial year +29 +14
instruments
Other forms of remuneration Outstanding deferred
Variable Cash-based 36 8 remuneration (breakdown)
Shares and share-linked Cash 16 2
instruments 24 Shares and share-linked instruments 84 98
Other forms of remuneration Other forms of remuneration
Total 100 Total 100 100
Breakdown of remuneration awarded to material risk Outstanding deferred

takers in the current financial year remuneration (performance
adjustments)
Material risk takers Of which exposed to ex-
Category of remuneration Unrestricted Deferred post adjustments 100 100
% % Reductions in current
year due to ex-post adjustments
Fixed Cash-based 54 (explicit 1)
Shares and share-linked Reductions in current year
instruments due to ex-post adjustments
Other forms of remuneration (implicit 2) 15 14
Variable Cash-based 28 1
Shares and share-linked Outstanding retained
instruments 17 remuneration (performance
Other forms of remuneration adjustments)
Total 100 Of which exposed to ex-
post adjustments
Reductions in current year
due to ex-post adjustments
(explicit)
Reductions in current year
due to ex-post adjustments
(implicit)
1
Examples of explicit ex-post adjustments include malus, clawbacks or similar
reversals or downward revaluations of awards.
2
Examples of implicit ex-post adjustments include fluctuations in the value of the
shares or performance units.

UOB Cityscape by Ong Kim Seng
Watercolour on canvas
This commissioned painting shows UOBs headquarters after

the completion of UOB Plaza 1 in 1992, and the renovation of
UOB Plaza 2 in 1995. This is one of Ong Kim Sengs largest
pieces, and is displayed at UOB Plaza 1 which is one of the
tallest buildings in Singapore.
Ong captures the unique octagonal design of the UOB towers

on a clear sunny day. The riverside scene in the earlier painting
(on page 23) has also evolved from a bustling river to a thriving
financial district.
Ong received the Cultural Medallion in 1990. Largely self-taught,

the artist is known for his travel paintings as well as depictions of
local landmarks. A multiple-award winner, Ong was conferred the
Dolphin Fellowship by the American Watercolour Society.


31 December 2011
Management Discussion
and Analysis
Notes:
Certain comparative figures have been restated to conform with the current years presentation.
Certain figures in this section may not add up to the relevant totals due to rounding.
Amounts less than $500,000 in absolute term are shown as 0.
NM denotes not meaningful.

Management Discussion and Analysis
Overview
2011 2010 +/() %
Summarised income statement ($ million)

Net interest income 3,678 3,532 4.1
Fee and commission income 1,318 1,163 13.3
Other non-interest income 703 811 (13.4)
Total income 5,699 5,507 3.5
Less: Total expenses 2,450 2,258 8.5
Operating profit 3,248 3,249
Less: Amortisation/impairment charges 534 485 10.1
Add: Share of profit of associates 93 139 (33.0)
Less: Tax and non-controlling interests 481 478 0.7
Core net profit after tax 2,327 2,426 (4.1)
Add: One-time gain 1 270 NM
Net profit after tax 2 2,327 2,696 (13.7)
Financial indicators (based on core earnings)
Non-interest income/Total income (%) 35.5 35.9 (0.4)% point
Overseas net profit before tax contribution (%) 34.7 31.5 3.2% points
Earnings per ordinary share ($) 3

Basic 1.43 1.52 (5.9)
Diluted 1.42 1.52 (6.6)
Return on average ordinary shareholders equity (%) 3 11.1 12.9 (1.8)% points
Return on average total assets (%) 1.06 1.24 (0.18)% point
Net interest margin (%) 1.92 2.09 (0.17)% point
Expense/Income ratio (%) 43.0 41.0 2.0% points
Loan charge off rate (bp)

Exclude collective impairment 12 18 (6) bp
Include collective impairment 30 35 (5) bp
Net dividend per ordinary share ()

Interim 20.0 20.0
Final 40.0 40.0
Special 10.0 NM
Total 60.0 70.0 (14.3)
1
Refer to the gains on sale of UOB Life Assurance Limited and United Industrial Corporation Limited.
2
Refer to profit attributable to equity holders of the Bank.
3
Calculated based on profit attributable to equity holders of the Bank net of preference share dividends.

Overview (continued)
2011 2010 +/() %
Financial indicators (continued)
Customer loans (net) ($ million) 141,191 112,440 25.6
Customer deposits ($ million) 169,460 142,299 19.1
Loans/Deposits ratio (%) 1 83.3 79.0 4.3% points
Non-performing loans ratio (%) 2 1.4 1.8 (0.4)% point
Total assets ($ million) 236,958 213,778 10.8
Shareholders equity ($ million) 3 22,967 21,473 7.0
Net asset value (NAV) per ordinary share ($) 4 13.23 12.51 5.8
Revalued NAV per ordinary share ($) 4 15.28 14.34 6.6

Core Tier 1 11.9 13.3 (1.4)% points
Tier 1 13.5 15.3 (1.8)% points
Total 16.7 19.8 (3.1)% points
1
Refer to net customer loans and customer deposits.
2
Refer to non-performing loans as a percentage of gross customer loans.
3
Refer to equity attributable to equity holders of the Bank.
4
Preference shares are excluded from the computation.

Performance review
The Group recorded a net profit after tax of $2,327 million for the financial year 2011, 4.1% lower when compared to the previous year.
The increase in total income was offset by higher operating expenses, coupled with higher collective impairment set aside mainly due
to strong loans growth. Share of associates profits were lower due to weaker performance in the second half of 2011.
Total income increased 3.5% to $5,699 million for the year, contributed by higher net interest income and fee and commission
income. Net interest income grew 4.1% to $3,678 million as strong loans growth for the year more than offset the impact of lower
loan yields and rising funding costs. Fee and commission income rose 13.3% to $1,318 million across Singapore and the regional
countries. Loan-related fee income rose 29.9% to $370 million while fee income from trade-related, credit card and investment-
related businesses also increased. Trading and investment income was lower at $392 million due to weaker global market sentiments
in the second half of the year.
Costs continued to be managed. Total operating expenses for the year increased 8.5% to $2,450 million on higher staff costs, occupancy
and revenue-related expenses. Staff costs rose 13.0% on increased headcount to support business growth. Expense-to-income ratio
stood at 43.0%.
Credit quality of loans remained sound. Individual impairment on loans declined to $163 million, mainly from Singapore and the regional
countries. Loans charge off improved 5 basis points to 30 basis points while non-performing loans ratio improved 40 basis points to
1.4%. Total impairment charges were $523 million due to collective impairment arising from loans growth.
Net customer loans rose 25.6% to $141.2 billion as at 31 December 2011. The increase was broad based across geographies and
industries. Loans from the regional countries escalated 35.2%, higher than Singapore which grew 22.2% as the Groups regional
franchise gained further traction.
The Groups liquidity and funding position continued to be strong. Reliance on interbank funding was reduced considerably by
$12.1 billion, 38.0% to $19.8 billion as at 31 December 2011. Instead, customer deposits were built up significantly.
Customer deposits rose 19.1% for the year to reach $169.5 billion as at 31 December 2011. The growth was broad based across
territories and mostly in fixed deposits. Loans-to-deposits ratio stood at 83.3%. To further entrench the Groups funding position,
S$1 billion fixed rate subordinated notes, A$350 million senior unsecured floating rate notes, as well as US commercial papers were
raised during the year.
Shareholders equity grew 7.0% to $23.0 billion mainly contributed by higher retained earnings and the issuance of new ordinary shares
pursuant to the scrip dividend scheme.
Group Tier 1 and total capital adequacy ratios of 13.5% and 16.7% respectively as at 31 December 2011 were well above the regulatory
requirements. The capital adequacy ratios were lower compared to the previous year largely due to higher risk-weighted assets on
strong loans growth.

Net interest income
Net interest margin
2011 2010
Average Average Average Average
balance Interest rate balance Interest rate
$ million $ million % $ million $ million %
Interest bearing assets

Customer loans 126,583 4,311 3.41 102,303 3,806 3.72
Interbank balances 33,306 547 1.64 33,353 417 1.25
Securities 32,021 782 2.44 33,615 770 2.29
Total 191,910 5,641 2.94 169,270 4,994 2.95
Interest bearing liabilities

Customer deposits 151,197 1,514 1.00 130,683 1,101 0.84
Interbank balances/others 35,877 449 1.25 33,993 361 1.06
Total 187,074 1,963 1.05 164,677 1,462 0.89
Net interest margin 1 1.92 2.09

1
Net interest margin represents net interest income as a percentage of total interest bearing assets.
Volume and rate analysis
2011 vs 2010 2010 vs 2009

Volume Rate Net Volume Rate Net
change change change change change change
$ million $ million $ million $ million $ million $ million
Interest income
Customer loans 903 (399) 505 126 (241) (115)
Interbank balances (1) 130 130 148 (141) 7
Securities (37) 49 13 40 (98) (57)
Total 866 (219) 647 314 (480) (166)
Interest expense
Customer deposits 173 241 413 101 (131) (30)
Interbank balances/others 48 40 88 21 (16) 6
Total 221 280 501 123 (147) (24)
Net interest income 646 (500) 146 191 (333) (142)
Net interest income grew 4.1% to $3,678 million as strong loans growth for the year more than offset the impact of lower loan yields
and rising funding costs. Net interest margin was lower at 1.92%.

Non-interest income
2011 2010 +/()

$ million $ million %
Fee and commission income

Credit card 231 194 18.8
Fund management 98 125 (22.2)
Investment-related 208 191 8.8
Loan-related 370 285 29.9
Service charges 100 91 9.6
Trade-related 249 210 18.8
Others 62 66 (6.4)
1,318 1,163 13.3
Other non-interest income

Dividend income 75 79 (4.3)
Rental income 112 119 (5.5)
Trading income/(loss) 84 71 17.7
Non-trading income/(loss)
Financial instruments at fair value through profit or loss 106 173 (38.9)
Available-for-sale assets and others 202 271 (25.3)
392 516 (23.9)
Other income 123 98 25.0
Other operating income 515 614 (16.1)
703 811 (13.4)
Core non-interest income 2,021 1,975 2.3

Add: One-time gain 294 NM
Total 2,021 2,268 (10.9)
Core non-interest income improved 2.3% to $2,021 million in 2011, led by strong growth in fee and commission income across
Singapore and the regional countries. Loan-related fee income rose 29.9% while fee income from trade-related, credit card and
investment-related businesses also increased. Trading and investment income was lower at $392 million due to weaker global market
sentiments in the second half of the year.

Operating expenses
2011 2010 +/()

Staff costs 1,403 1,242 13.0
Other operating expenses

Revenue-related 511 479 6.6
Occupancy-related 241 220 9.9
IT-related 150 173 (13.2)
Others 145 144 0.7
1,047 1,016 3.1
Total 2,450 2,258 8.5
Costs continued to be managed. Total operating expenses for the year increased 8.5% to $2,450 million on higher staff costs, occupancy
and revenue-related expenses. Staff costs rose 13.0% on increased headcount to support business growth. Expense-to-income ratio
was 2% points higher at 43.0%.
Impairment charges
2011 2010 +/()

Individual impairment on loans 1

Singapore 10 36 (72.9)
Malaysia 3 16 (82.0)
Thailand 31 38 (20.5)
Indonesia 28 13 >100.0
Greater China 2 (3) 2 (>100.0)
Others 95 85 11.0
163 190 (14.4)
Individual impairment on securities and others 58 48 21.1
Collective impairment 303 236 28.2

Total 523 474 10.4
1
Based on the location where the non-performing loans are booked.
2
Comprise China, Hong Kong and Taiwan.
Credit quality of loans remained sound. Total impairment charges was higher at $523 million. Collective impairment increased 28.2%
to $303 million mainly on robust loans growth. Individual impairment on loans declined 14.4% to $163 million, mainly from Singapore
and the regional countries. Loans charge off improved 5 basis points to 30 basis points while non-performing loans ratio improved 40
basis points to 1.4%.

Customer loans
2011 2010
$ million $ million
Gross customer loans 143,943 115,122

Less: Individual impairment 770 930
Collective impairment 1,982 1,752
Net customer loans 141,191 112,440
By industry
Transport, storage and communication 7,041 6,710
Building and construction 17,515 11,506
Manufacturing 11,336 8,617
Financial institutions 23,966 18,673
General commerce 17,597 15,094
Professionals and private individuals 18,629 14,907
Housing loans 40,615 33,528
Others 7,244 6,086
Total (gross) 143,943 115,122
By currency
Singapore dollar 78,557 66,915
US dollar 19,791 13,855
Malaysian ringgit 18,832 14,282
Thai baht 7,530 6,841
Indonesian rupiah 4,488 3,213
Others 14,743 10,017
Total (gross) 143,943 115,122
By maturity
Within 1 year 50,384 44,983
Over 1 year but within 3 years 23,170 19,766
Over 3 years but within 5 years 20,484 12,575
Over 5 years 49,904 37,798
Total (gross) 143,943 115,122
By geography 1
Singapore 92,268 75,534
Malaysia 20,712 15,278
Thailand 7,818 7,050
Indonesia 5,765 3,975
Greater China 8,430 5,295
Others 8,949 7,990
Total (gross) 143,943 115,122
1
Based on the location where the loans are booked.
Net customer loans rose 25.6% to $141.2 billion, where the increase was broad based across geographies and industries. Loans from
the regional countries grew 35.2% while that from Singapore was also strong at 22.2%, crossing $90 billion as at 31 December 2011.

Non-performing assets
2011 2010
$ million $ million
Non-performing assets (NPA)

Loans (NPL) 2,020 2,155
Debt securities and others 1 560 405
Total 2,580 2,560
By grading
Substandard 1,652 1,478
Doubtful 426 432
Loss 502 650
Total 2,580 2,560
By security coverage
Secured 998 1,153
Unsecured 1,582 1,407
Total 2,580 2,560
By ageing
Current 605 596
Within 90 days 190 194
Over 90 to 180 days 141 251
Over 180 days 1,644 1,519
Total 2,580 2,560
Cumulative impairment
Individual 1,049 1,157
Collective 2,158 1,888
Total 3,207 3,045
As a % of NPA 124.3% 118.9%

As a % of unsecured NPA 202.7% 216.4%
2011 2010
NPL NPL ratio NPL NPL ratio
$ million % $ million %
NPL by industry
Transport, storage and communication 534 7.6 361 5.3
Building and construction 108 0.6 149 1.1
Manufacturing 401 3.5 524 6.1
Financial institutions 194 0.8 194 1.0
General commerce 259 1.5 353 2.3
Professionals and private individuals 144 0.8 197 1.3
Housing loans 228 0.6 259 0.8
Others 152 2.1 118 1.7
Total 2,020 1.4 2,155 1.8
1
Included contingent liabilities in 2011.

Non-performing assets (continued)
Total cumulative impairment

as a % of
NPL as a % of unsecured
NPL ratio NPL NPL
$ million % % %
NPL by geography 1
Singapore
2011 714 0.8 250.1 542.9
2010 845 1.1 213.7 393.5
Malaysia
2011 346 1.7 114.7 336.4
2010 373 2.4 93.6 258.5
Thailand
2011 309 4.0 81.9 141.3
2010 409 5.2 69.4 120.9
Indonesia
2011 83 1.4 83.1 1,150.0
2010 80 2.0 71.3 814.3
Greater China
2011 31 0.4 222.6 222.6
2010 61 1.2 104.9 376.5
Others
2011 537 6.0 33.1 36.3
2010 387 4.8 31.5 56.2
Group
2011 2,020 1.4 136.2 238.5
2010 2,155 1.8 124.5 250.7
1
Based on the location where the non-performing loans are booked.
Group NPL improved to $2,020 million as at 31 December 2011, with Group NPL ratio lower at 1.4% over the previous year.
Impairment coverage against NPL remained strong at 136.2%.

Customer deposits
2011 2010
$ million $ million
By product group
Fixed deposits 95,168 77,310
Savings deposits 39,945 34,841
Current accounts 27,993 27,261
Others 6,355 2,888
Total 169,460 142,299
By maturity
Within 1 year 162,887 139,129
Over 1 year but within 3 years 5,185 1,784
Over 3 years but within 5 years 1,126 1,157
Over 5 years 263 230
Total 169,460 142,299
By currency
Singapore dollar 95,720 86,464
US dollar 19,818 17,264
Thai baht 6,874 6,503
Others 21,384 13,410
Total 169,460 142,299
Loans/Deposits ratio (%) 83.3 79.0
The Groups funding and liquidity position continued to be strong. Loans-to-deposits ratio improved to 83.3% as at 31 December 2011.
Customer deposits rose 19.1% for the year to reach $169.5 billion as at 31 December 2011. The strong deposits growth were broad
based across territories and mostly in fixed deposits.
Debts issued
2011 2010
$ million $ million
Subordinated debts
Due after one year (unsecured) 5,084 5,367
Other debts issued

Due within one year (unsecured) 5,118 672
Due after one year (unsecured) 1,584 224
6,702 896
Total 11,786 6,263
To further diversify the Groups funding base, longer-term funds were raised by tapping on institutional demands. S$1 billion fixed
rate subordinated notes, A$350 million senior unsecured floating rate notes and US commercial papers were issued during the year.
As a result, less reliance was placed on interbank funding which dropped 38.0% for the year to $19.8 billion.

Shareholders equity
2011 2010
$ million $ million
Shareholders equity 22,967 21,473

Add: Revaluation surplus 3,225 2,818
Shareholders equity including revaluation surplus 26,192 24,292
Shareholders equity grew 7.0% to $23.0 billion mainly contributed by higher retained earnings and the issuance of new ordinary shares
pursuant to the scrip dividend scheme.
As at 31 December 2011, revaluation surplus of $3.2 billion on the Groups properties was not recognised in the financial statements.

Performance by operating segment 1
GR GW GMIM Other 2 Elimination 3 Total

2011
Operating income 2,406 2,176 927 580 (390) 5,699
Operating expenses (1,306) (464) (533) (422) 275 (2,450)
Impairment charges (71) (170) 17 (299) (523)
Amortisation of intangible assets (3) (7) (10)
Share of profit of associates (3) 96 93
Profit before tax 1,026 1,535 408 (45) (116) 2,808
2010
Operating income 2,245 1,885 1,153 568 (344) 5,507
Share of profit of associates 3 136 139
1
Transfer prices between operating segments are on arms length basis in a manner similar to transactions with third parties.
2
Excluded one-time gain on sale of UOB Life Assurance Limited and United Industrial Corporation Limited in 2010.
3
This includes joint income and expenses allocated to business segments in respect of cross-sell activities.
4
Certain prior period comparatives have been restated to reflect the re-alignment of the organisation to be more segment focused.
The Group is organised to be segment-led across key markets. Global segment heads are responsible for driving business, with
decision-making balanced with a geographical perspective. For internal management purposes, the following segments represent the
key customer segments and product groups:
Group Retail (GR)

Segment profit increased by 0.8% to $1,026 million in 2011. Increase in fee and commission income from treasury, investment
and credit cards products and higher net interest income were partly negated by higher business volume-related costs and
impairment charges.
Group Wholesale (GW)

Segment profit grew 21.0% to $1,535 million in 2011, with increases registered in net interest income as well as loan-related and trade-
related fee income driven by strong loans growth.
Global Markets and Investment Management (GMIM)

Segment profit declined 44.3% to $408 million in 2011, mainly attributed to lower net interest income on reduced gapping opportunities
and higher funding costs, coupled with realised losses from sale of investment securities. Higher operating expenses grew on higher
business volumes.
Other
Segment loss increased to $45 million in 2011, mainly due to higher collective impairment set aside and lower share of associates profits.

Performance by geographical segment 1
Total operating income Profit before tax Total assets

2011 2010 2011 2010 2011 2010
Singapore 2 3,339 3,436 1,840 1,996 144,739 141,970

Malaysia 797 706 450 395 29,308 21,620
Thailand 431 408 50 87 11,996 10,533
Indonesia 430 388 151 175 7,767 5,455
Greater China 323 227 147 105 19,133 11,879
Others 379 341 180 156 19,819 18,111
5,699 5,507 2,818 2,914 232,762 209,568
Intangible assets (10) (11) 4,196 4,210
Total 5,699 5,507 2,808 2,903 236,958 213,778
1
Based on the location where the transactions and assets are booked which approximates that based on the location of the customers and assets. Information is stated
after elimination of inter-segment transactions.
2
The Group recorded a 3.5% increase in total operating income for 2011, contributed by the regional countries which rose 14.6% to
$2.0 billion for the year. At the pre-tax profit level, the regional countries grew 4.7% in 2011, contributed by Malaysia and Greater China.
Capital adequacy ratios
The Groups capital adequacy ratios continued to be strong with core Tier 1, Tier 1 and total capital adequacy ratios at 11.9%, 13.5%
and 16.7% respectively. These ratios were lower than a year ago due to higher risk-weighted assets on strong loans growth, partly
offset by higher retained earnings.

My Dream Land by Gong Yao Min
Chinese ink on rice paper
My Dream Land is the Grand Prize winning entry of the 2011

UOB Painting Of The Year (POY) Competition. The Group has
supported the development of the local arts scene through its
POY Competition since 1982.
This painting offers an alternative view of the hexagonal

UOB Plaza 1, now nestled within Singapores modern and urban
cityscape. The flowing Singapore River has also been replaced
with an endless stream of traffic. An unusual Chinese ink work, this
piece captures the breadth of the city as well as the meticulous
details of its architecture. Colonial design is laid alongside modern
skyscrapers and crowded traffic junctions. Gong has successfully
used Chinese ink in a contemporary way to portray the energy of
Singapore as a business hub in Asia.
Gong is a graduate from the An Hui Educational University in China

and the Nanyang Academy of Fine Arts in Singapore. He has lived
in Singapore for more than ten years and is presently a professional
artist and art tutor.


31 December 2011
Financial
Statements
Contents
85 Directors Report
90 Statement by Directors
91 Independent Auditors Report
92 Income Statements
93 Statements of Comprehensive Income
94 Balance Sheets
95 Statements of Changes in Equity
97 Consolidated Cash Flow Statement
98 Notes to the Financial Statements

Directors Report
for the financial year ended 31 December 2011
The directors are pleased to present their report to the members together with the audited financial statements of United Overseas Bank
Limited (the Bank) and its subsidiaries (collectively, the Group) for the financial year ended 31 December 2011.
Directors
The directors of the Bank in office at the date of this report are:
Wee Cho Yaw (Chairman)

Wee Ee Cheong (Deputy Chairman and Chief Executive Officer)
Ngiam Tong Dow
Cham Tao Soon
Wong Meng Meng
Yeo Liat Kok Philip
Thein Reggie
Franklin Leo Lavin
Cheng Jue Hiang Willie
Tan Lip-Bu
Hsieh Fu Hua (Appointed on 16 January 2012)
Arrangements to enable directors to acquire shares or debentures
Neither at the end of nor at any time during the financial year was the Bank a party to any arrangement whose objects are, or one of
whose objects is, to enable the directors of the Bank to acquire benefits by means of the acquisition of shares or debentures of the Bank
or any other body corporate, other than those issued in connection with the UOB Restricted Share Plan and UOB Share Appreciation
Rights Plan as set out in this report.

Directors Report
Directors interests in shares or debentures
(a) The following directors, who held office at the end of the financial year, had, according to the register of directors shareholdings
required to be kept under Section 164 of the Singapore Companies Act, Cap. 50, an interest in shares of the Bank or related
corporations as stated below:
Direct interest Deemed interest

At 31.12.2011 At 1.1.2011 At 31.12.2011 At 1.1.2011
The Bank
Ordinary shares
Wee Cho Yaw 17,382,921 16,913,367 263,862,980 256,801,601
Wee Ee Cheong 3,047,878 2,965,549 156,432,870 152,207,242
Cheng Jue Hiang Willie 50,467 50,467
Ngiam Tong Dow 14,464 14,074
Cham Tao Soon 10,003 10,003
Class E non-cumulative non-convertible preference shares

Wee Cho Yaw 167,700 167,700
Wee Ee Cheong 20,000 20,000 167,700 167,700
Cheng Jue Hiang Willie 3,000 3,000
Ngiam Tong Dow 2,000 2,000 2,000 2,000
Cham Tao Soon 1,000 1,000
Yeo Liat Kok Philip 1,000 1,000
Thein Reggie 1,000 1,000
United Overseas Insurance Limited

Ordinary shares
Wee Cho Yaw 38,100 38,100
(b) There was no change in any of the above-mentioned interests in the Bank between the end of the financial year and
21 January 2012.
Directors contractual benefits
Except as disclosed in the financial statements, since the end of the previous financial year, no director of the Bank has received or
become entitled to receive a benefit by reason of a contract made by the Bank or a related corporation with the director, or with a firm
of which the director is a member, or with a company in which the director has a substantial financial interest.

Directors Report
Directors remuneration
Details of the total fees and other remuneration paid/payable by the Group to the directors of the Bank for the financial year ended
31 December 2011 are as follows:
Benefits-
in-kind
Chairmans Directors and
fee fees Salary Bonus other Total
% % % % % %
$6,500,000 to $6,749,999
Wee Ee Cheong 1 3.1 14.3 80.7 1.9 100.0
$2,750,000 to $2,999,999
Wee Cho Yaw 2 80.8 18.7 0.5 100.0
$250,000 to $499,999
Cham Tao Soon 100.0 100.0
Below $250,000
Ngiam Tong Dow 100.0 100.0
Wong Meng Meng 100.0 100.0
Yeo Liat Kok Philip 100.0 100.0
Lim Pin (Retired on 29 April 2011) 100.0 100.0
Thein Reggie 100.0 100.0
Franklin Leo Lavin 100.0 100.0
Cheng Jue Hiang Willie 100.0 100.0
Tan Lip-Bu 100.0 100.0
1
60% of the variable bonus to be received by Mr Wee Ee Cheong will be deferred and vest equally over 3 years subject to the Bank fulfilling pre-determined performance
conditions. Of the 60% deferred bonus, half will be issued in the form of performance units which are derived by dividing the amount of deferred bonus by the fair value
of a UOB share on the date of issue. After vesting, the performance units may be redeemed, and the amount payable to Mr Wee will be determined by multiplying the
number of performance units with the closing price of a UOB share on the date of redemption. The dates of issue and vesting of the performance units shall be determined
by the Remuneration committee.
2
The total remuneration of Chairman Wee, which falls within the above-mentioned band, includes a fee of $2.25 million that the Remuneration Committee has proposed to
pay to him for providing valuable advice and guidance to Management. The proposed fee is subject to shareholders approval at the Annual General Meeting to be held
on 26 April 2012.
Share-based compensation plans
The share-based compensation plans, which are administered by the Remuneration Committee, comprise the UOB Restricted Share
Plan and UOB Share Appreciation Rights Plan. Details of these plans are found below and in Note 38 to the financial statements.

Directors Report
UOB Restricted Share Plan and UOB Share Appreciation Rights Plan (the Plans)
Following a review of the remuneration strategy across the Group, the Bank implemented the Plans on 28 September 2007, with a view
to aligning the interests of participants with that of shareholders and the Group by fostering a culture of ownership and enhancing the
competitiveness of the Groups remuneration for selected employees.
Employees with a minimum of one-year service may be selected to participate in the Plans based on factors such as market-competitive
practices, job level, individual performance, leadership skills and potential. Generally granted on an annual basis, the Remuneration
Committee will determine the number of Restricted Shares (RS) and Share Appreciation Rights (SAR) to be granted, the vesting
period and the conditions for vesting.
RS represent UOB shares that are restricted by time and performance conditions as to when they vest. Upon vesting, participants will
receive UOB shares represented by the RS.
SAR are rights, which upon exercise, confer the right to receive such number of UOB shares (or by exception, cash) equivalent to the
difference between the prevailing market value and the grant value of the underlying UOB shares comprised in the SAR, divided by
the prevailing market value of a UOB share. The grant value is determined with reference to the average of the closing prices of UOB
shares over the three days preceding the grant date. Upon vesting of SAR, participants have up to six years from the date of grant to
exercise their rights.
Subject to the achievement of pre-determined return on equity (ROE) targets as shown below, 25% of the RS and SAR of the 2008
grant and 50% of the 2009 and subsequent grants, will vest after two years and the remainder after three years from the dates of grant.
2008 grant 2009 grant 2010 and 2011 grant

Percentage Percentage of award Percentage Percentage of award Percentage Percentage of award
of ROE target to be vested of ROE target to be vested of ROE target to be vested
achieved achieved achieved
95% 100% 95% 100% 115% 130%
90% 80% 90% 90% 110% 120%
85% 60% 85% 80% 105% 110%
80% 50% < 85% At the discretion of 95% 100%
< 80% At the discretion of the Remuneration 90% 90%
the Remuneration Committee 85% 80%
Committee < 85% At the discretion of
the Remuneration
Committee
Participants who leave the Group before vesting of the RS and SAR will forfeit their rights unless otherwise decided by the
Remuneration Committee.
The Plans shall be in force for a period of ten years or such other period as the Remuneration Committee may determine. The Plans
only allow the delivery of UOB ordinary shares held in treasury by the Bank.

Directors Report
Audit Committee
The Audit Committee comprises three members, all of whom are non-executive independent directors. The members of the Audit
Committee at the date of this report are as follows:
Cham Tao Soon (Chairman)

Yeo Liat Kok Philip
Thein Reggie
The Audit Committee has reviewed the financial statements, the internal and external audit plans and audit reports, the external
auditors evaluation of the system of internal accounting controls, the scope and results of the internal and external audit procedures,
the adequacy of internal audit resources, the cost effectiveness, independence and objectivity of external auditors, the significant
findings of internal audit investigations and interested person transaction if any. The reviews were made with the internal and external
auditors, the Chief Financial Officer and/or other senior management staff, as appropriate.
The Audit Committee has considered the financial, business and professional relationships between the external auditors and the Bank.
It is of the view that the relationships are not incompatible with maintaining the independence of the external auditors.
Auditors
The Audit Committee has nominated Ernst & Young LLP for re-appointment as auditors of the Bank and Ernst & Young LLP have
expressed their willingness to be re-appointed.
On behalf of the Board of Directors,

Singapore
23 February 2012

Statement by Directors
We, Wee Cho Yaw and Wee Ee Cheong, being two of the directors of United Overseas Bank Limited, do hereby state that, in the opinion
of the directors:
(a) the accompanying balance sheets, income statements, statements of comprehensive income, statements of changes in equity
and consolidated cash flow statement together with notes thereto are drawn up so as to give a true and fair view of the state of
affairs of the Bank and of the Group as at 31 December 2011, the results of the business and changes in equity of the Bank and
the Group and cash flows of the Group for the financial year then ended; and
(b) at the date of this statement, there are reasonable grounds to believe that the Bank will be able to pay its debts as and when
they fall due.
On behalf of the Board of Directors,

Singapore
23 February 2012

Independent Auditors Report
To the members of United Overseas Bank Limited

Report on the consolidated financial statements
We have audited the accompanying consolidated financial statements of United Overseas Bank Limited (the Bank) and its
subsidiaries (collectively, the Group) set out on pages 92 to 160, which comprise the balance sheets of the Bank and the Group as
at 31 December 2011, the income statements, the statements of comprehensive income and the statements of changes in equity of
the Bank and the Group and the consolidated cash flow statement of the Group for the year then ended, and a summary of significant
accounting policies and other explanatory information.
Managements responsibility for the consolidated financial statements

Management is responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with the
provisions of the Singapore Companies Act (the Act) and Singapore Financial Reporting Standards, and for devising and maintaining
a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from
unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the
preparation of true and fair profit and loss accounts and balance sheets and to maintain accountability of assets.
Auditors responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our
audit in accordance with Singapore Standards on Auditing. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial
statements. The procedures selected depend on the auditors judgement, including the assessment of the risks of material misstatement
of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal
control relevant to the entitys preparation of the consolidated financial statements that give a true and fair view in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entitys internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements of the Bank and the consolidated financial statements of the Group are properly drawn up in
accordance with the provisions of the Act and Singapore Financial Reporting Standards, including the modification of the requirements
of FRS39 Financial Instruments: Recognition and Measurement in respect of loan loss provisioning by MAS Notice 612 Credit Files,
Grading and Provisioning, so as to give a true and fair view of the state of affairs of the Bank and the Group as at 31 December 2011,
the results of the Bank and of the Group, the changes in equity of the Bank and the changes in equity and cash flows of the Group for
the year ended on that date.
Report on other legal and regulatory requirements

In our opinion, the accounting and other records required by the Act to be kept by the Bank and by those subsidiaries incorporated in
Singapore of which we are the auditors have been properly kept in accordance with the provisions of the Act.
ERNST & YOUNG LLP

Public Accountants and Certified Public Accountants
Singapore
23 February 2012

Income Statements
The Group The Bank

2011 2010 2011 2010
Note $000 $000 $000 $000
Interest income 3 5,640,504 4,993,592 3,361,260 3,244,927

Less: Interest expense 4 1,962,547 1,461,652 1,043,512 913,962
Net interest income 3,677,957 3,531,940 2,317,748 2,330,965
Fee and commission income 5 1,318,074 1,163,290 847,331 727,736

Dividend income 75,265 78,607 373,225 248,898
Rental income 112,434 118,933 94,017 99,848
Other operating income 6 515,195 907,453 375,586 866,672
Non-interest income 2,020,968 2,268,283 1,690,159 1,943,154
Total operating income 5,698,925 5,800,223 4,007,907 4,274,119
Less: Staff costs 7 1,403,183 1,242,084 748,777 711,923

Other operating expenses 8 1,047,284 1,015,674 654,259 666,605
Total operating expenses 2,450,467 2,257,758 1,403,036 1,378,528
Operating profit before amortisation/

impairment charges 3,248,458 3,542,465 2,604,871 2,895,591
Less: Amortisation/impairment charges

Intangible assets 32 10,469 10,982
Loans and other assets 9 523,185 473,837 352,163 329,085
Operating profit after amortisation/
Share of profit of associates 93,126 139,058

Profit before tax 2,807,930 3,196,704 2,252,708 2,566,506
Less: Tax 10 467,243 479,622 268,392 265,892

Profit for the financial year 2,340,687 2,717,082 1,984,316 2,300,614
Attributable to:
Equity holders of the Bank 2,327,003 2,695,851 1,984,316 2,300,614
Non-controlling interests 13,684 21,231
2,340,687 2,717,082 1,984,316 2,300,614
Earnings per share ($) 11

Basic 1.43 1.70
Diluted 1.42 1.69
The accounting policies and explanatory notes form an integral part of the financial statements.

Statements of Comprehensive Income
The Group The Bank

2011 2010 2011 2010
$000 $000 $000 $000
Profit for the financial year 2,340,687 2,717,082 1,984,316 2,300,614
Currency translation adjustments (36,228) (112,165) 1,639 (11,706)

Change in available-for-sale reserve
Change in fair value (211,004) 502,252 (160,002) 464,660
Transfer to income statement on disposal/impairment 60,354 (148,909) 62,431 (126,729)
Tax relating to available-for-sale reserve 36,272 (39,831) 29,208 (38,352)
Change in share of other comprehensive income
of associates (72,311) (36,635)
Other comprehensive income for the financial year,
net of tax (222,917) 164,712 (66,724) 287,873
Total comprehensive income for the financial year,

net of tax 2,117,770 2,881,794 1,917,592 2,588,487
Attributable to:
Equity holders of the Bank 2,112,298 2,860,809 1,917,592 2,588,487
2,117,770 2,881,794 1,917,592 2,588,487

Balance Sheets
as at 31 December 2011
The Group The Bank

2011 2010 2011 2010
Note $000 $000 $000 $000
Equity
Share capital 12 5,253,129 4,685,480 4,421,579 3,853,930
Retained earnings 13 8,498,587 7,686,509 6,894,954 6,363,116
Other reserves 14 9,215,382 9,101,389 8,965,442 8,730,389
Equity attributable to equity holders of the Bank 22,967,098 21,473,378 20,281,975 18,947,435
Total equity 23,143,968 21,653,552 20,281,975 18,947,435
Liabilities
Deposits and balances of:
Banks 19,750,231 31,861,606 18,427,064 30,012,069
Non-bank customers 16 169,460,469 142,299,454 128,906,766 111,726,985
Subsidiaries 6,873,071 2,269,153
Bills and drafts payable 1,729,947 1,288,494 273,202 182,949
Derivative financial liabilities 34 7,066,549 5,742,797 6,513,356 5,288,776
Other liabilities 17 3,368,925 3,937,105 1,568,574 2,426,092
Tax payable 617,503 706,978 538,422 641,882
Deferred tax liabilities 18 34,215 25,388 18,283 672
Debts issued 19 11,785,938 6,263,106 6,423,880 6,165,111
Total liabilities 213,813,777 192,124,928 169,542,618 158,713,689
Total equity and liabilities 236,957,745 213,778,480 189,824,593 177,661,124
Assets
Cash, balances and placements with central banks 20 26,786,261 30,742,589 16,278,308 25,111,794
Singapore Government treasury bills and securities 9,652,099 12,208,479 9,591,069 12,088,460
Other government treasury bills and securities 8,187,626 7,521,047 4,139,516 3,278,200
Trading securities 21 271,335 137,796 167,700 133,535
Placements and balances with banks 22 16,951,056 11,454,864 14,170,486 9,195,488
Loans to non-bank customers 23 141,191,285 112,439,875 105,850,495 85,538,201
Placements with and advances to subsidiaries 5,692,510 2,869,330
Derivative financial assets 34 6,256,893 5,563,030 5,964,416 5,300,857
Assets pledged 24 2,526,169 6,949,973 2,526,169 6,949,973
Investment securities 25 13,770,398 15,639,224 12,219,380 14,199,914
Other assets 26 3,566,341 3,337,476 2,583,135 2,475,126
Deferred tax assets 18 333,847 231,342 108,789 41,098
Investment in associates 27 1,092,270 1,198,160 369,044 371,493
Investment in subsidiaries 28 4,762,588 4,757,008
Investment properties 30 1,125,929 1,125,395 1,457,792 1,418,669
Fixed assets 31 1,050,273 1,019,149 761,377 750,159
Intangible assets 32 4,195,963 4,210,081 3,181,819 3,181,819
Total assets 236,957,745 213,778,480 189,824,593 177,661,124
Off-balance sheet items

Contingent liabilities 33 15,820,723 15,021,407 12,159,569 11,910,308
Financial derivatives 34 351,224,163 289,010,803 304,179,887 254,775,442
Commitments 36 54,021,561 48,993,840 41,173,777 37,050,642
94 United Overseas Bank Limited

Statements of Changes in Equity
The Group
Attributable to equity holders of the Bank
Non-
Share Retained Other controlling Total
capital earnings reserves Total interests equity
$000 $000 $000 $000 $000 $000
2011
Balance at 1 January 4,685,480 7,686,509 9,101,389 21,473,378 180,174 21,653,552
Profit for the financial year 2,327,003 2,327,003 13,684 2,340,687

Other comprehensive income for the
financial year (214,705) (214,705) (8,212) (222,917)
Total comprehensive income for the
financial year 2,327,003 (214,705) 2,112,298 5,472 2,117,770
Transfers (326,096) 326,096

Change in non-controlling interests 31 31 (1,342) (1,311)
Dividends (1,188,829) (1,188,829) (7,434) (1,196,263)
Share buyback held in treasury (8,827) (8,827) (8,827)
Issue of shares under scrip dividend scheme 546,686 546,686 546,686
Share-based compensation 31,567 31,567 31,567
Increase in statutory reserves 794 794 794
Issue of treasury shares under share-based
compensation plans 29,790 (29,790)
Balance at 31 December 5,253,129 8,498,587 9,215,382 22,967,098 176,870 23,143,968
2010
Balance at 1 January 4,051,083 6,323,905 8,611,145 18,986,133 169,189 19,155,322
Profit for the financial year 2,695,851 2,695,851 21,231 2,717,082

Other comprehensive income for the
financial year 164,958 164,958 (246) 164,712
Total comprehensive income for the
financial year 2,695,851 164,958 2,860,809 20,985 2,881,794
Transfers (318,894) 318,894

Change in non-controlling interests 138 138 (2,273) (2,135)
Dividends (1,014,353) (1,014,353) (7,727) (1,022,080)
Issue of shares under scrip dividend scheme 621,420 621,420 621,420
Share-based compensation 19,231 19,231 19,231
Balance at 31 December 4,685,480 7,686,509 9,101,389 21,473,378 180,174 21,653,552
Note 12 13 14

Statements of Changes in Equity
The Bank
Share Retained Other Total
capital earnings reserves equity
$000 $000 $000 $000
2011
Balance at 1 January 3,853,930 6,363,116 8,730,389 18,947,435
Profit for the financial year 1,984,316 1,984,316

Other comprehensive income for the financial year (66,724) (66,724)
Total comprehensive income for the financial year 1,984,316 (66,724) 1,917,592
Transfers (300,000) 300,000

Dividends (1,152,478) (1,152,478)
Share buyback held in treasury (8,827) (8,827)
Issue of shares under scrip dividend scheme 546,686 546,686
Share-based compensation 31,567 31,567
Balance at 31 December 4,421,579 6,894,954 8,965,442 20,281,975
2010
Profit for the financial year 2,300,614 2,300,614

Other comprehensive income for the financial year 287,873 287,873
Total comprehensive income for the financial year 2,300,614 287,873 2,588,487
Transfers (300,000) 300,000

Dividends (974,967) (974,967)
Issue of shares under scrip dividend scheme 621,420 621,420
Note 12 13 14

Consolidated Cash Flow Statement
2011 2010
$000 $000
Cash flows from operating activities

Operating profit before amortisation and impairment charges 3,248,458 3,542,465
Adjustments for:
Depreciation of assets 115,628 137,067
Net (gain)/loss on disposal of assets 15,975 (361,100)
Operating profit before working capital changes 3,411,044 3,337,651
Increase/(decrease) in working capital
Deposits and balances of banks (12,111,375) 4,110,140
Deposits and balances of non-bank customers 27,161,015 20,797,354
Bills and drafts payable 441,453 (149,125)
Other liabilities 684,238 718,887
Restricted balances with central banks (790,552) (1,279,238)
Government treasury bills and securities 6,425,885 (3,900,415)
Trading securities (133,539) (19,644)
Investment securities 1,342,115 696,000
Placements and balances with banks (5,311,573) 656,154
Loans to non-bank customers (29,148,735) (13,612,706)
Other assets (928,410) (459,419)
Cash generated from/(used in) operations (8,958,434) 10,895,639
Income tax paid (601,036) (488,291)
Net cash provided by/(used in) operating activities (9,559,470) 10,407,348
Cash flows from investing activities

Acquisition of associates (14,830) (1,674)
Proceeds from disposal of associates 66
Increase in associates (1,068)
Acquisition of properties and other fixed assets (187,117) (106,027)
Proceeds from disposal of properties and other fixed assets 60,090 19,280
Proceeds from disposal of subsidiaries 488,763
Change in non-controlling interests (2,128)
Dividends received from associates 125,171 91,532
Net cash provided by/(used in) investing activities (16,620) 488,678
Cash flows from financing activities

Redemption of subordinated notes (1,300,000)
Increase in debts issued 6,822,832 219,237
Share buyback (8,827)
Change in non-controlling interests (1,311) (8)
Dividends paid on ordinary shares (539,134) (286,886)
Dividends paid on preference shares (103,716) (106,017)
Dividends paid to non-controlling interests (7,434) (7,727)
Net cash provided by/(used in) financing activities 4,862,410 (181,401)
Currency translation adjustments (33,200) (116,071)
Net increase/(decrease) in cash and cash equivalents (4,746,880) 10,598,554

Cash and cash equivalents at beginning of the financial year 27,142,636 16,544,082
Cash and cash equivalents at end of the financial year (Note 37) 22,395,756 27,142,636

Notes to the Financial Statements
These notes form an integral part of and should be read in conjunction with the accompanying financial statements.
1. Corporate information
United Overseas Bank Limited (the Bank) is a limited liability company incorporated and domiciled in Singapore. The registered
office of the Bank is at 80 Raffles Place, UOB Plaza, Singapore 048624.
The Bank is principally engaged in the business of banking in all its aspects. The principal activities of its major subsidiaries are
set out in Note 28b to the financial statements.
2. Summary of significant accounting policies

(a) Basis of preparation
The financial statements of the Bank and its subsidiaries (collectively, the Group) have been prepared in accordance with
Singapore Financial Reporting Standards (FRS) as required by the Singapore Companies Act, with modification to FRS39
Financial Instruments: Recognition and Measurement in respect of loan loss provisioning, as provided in Monetary Authority of
Singapore (MAS) Notice 612 Credit Files, Grading and Provisioning.
The financial statements have been prepared under the historical cost convention, except for available-for-sale financial assets,
financial instruments at fair value through profit or loss and all financial derivatives. In addition, the carrying amount of assets
and liabilities that are designated as hedged items in a fair value hedge are adjusted for fair value changes attributable to the
hedged risks.
The financial statements are presented in Singapore dollars and to the nearest thousand unless otherwise indicated.
(b) Changes in accounting policies

The Group adopted the following new/revised FRS and Interpretations to FRS (INT FRS) during the financial year. The adoption
of these FRS and INT FRS did not have any significant effect on the financial statements of the Group.
FRS24 Related Party Disclosures

INT FRS119 Extinguishing Financial Liabilities with Equity Instruments
Improvements to FRS issued in 2010
Other than the above changes, the accounting policies applied by the Group in the financial year were consistent with those
adopted in the previous financial year.
Future changes in accounting policies

The following new/revised FRS that are in issue will apply to the Group for the financial years as indicated:
Effective for financial year beginning on or after 1 January 2012

Amendments to FRS12 Deferred Tax Recovery of Underlying Assets
Amendments to FRS107 Disclosures Transfers of Financial Assets
Effective for financial year beginning on or after 1 January 2013

FRS19 Employee Benefits
FRS27 Separate Financial Statements
FRS28 Investments in Associates and Joint Ventures
FRS110 Consolidated Financial Statements
FRS111 Joint Arrangements
FRS112 Disclosure of Interests in Other Entities
FRS113 Fair Value Measurements
Amendments to FRS1 Presentation of Items of Other Comprehensive Income
These pronouncements are not expected to have a significant impact on the financial statements of the Group when adopted.

2. Summary of significant accounting policies (continued)

(c) Subsidiaries
Subsidiaries are entities over which the Group has the power to govern their financial and operating policies. The Group generally
has such power when it directly or indirectly holds more than 50% of the issued share capital, or controls more than 50% of the
voting power or the composition of the board of directors, of the entities.
Subsidiaries are consolidated from the date the Group obtains control until the date such control ceases. Inter-company
transactions and balances are eliminated. Adjustments are made to align the accounting policies of the subsidiaries to those
of the Group. The portion of profit or loss and net assets of subsidiaries that belong to the non-controlling interests is disclosed
separately in the consolidated financial statements. Gain or loss arising from changes of the Banks interest in subsidiaries is
recognised in the income statement if they result in loss of control in the subsidiaries, otherwise, in equity.
Acquisition of subsidiaries and other business combinations are accounted for using the acquisition method. Consideration for
the acquisition includes fair value of the assets transferred, liabilities incurred, equity interests issued, contingent consideration
and existing equity interest in the acquiree. Identifiable assets acquired and liabilities and contingent liabilities assumed are, with
limited exceptions, measured at fair values at the acquisition date. Non-controlling interests that are equity interests are measured
at fair value or the proportionate share of the acquirees net identifiable assets at the acquisition date, determined on a case by
case basis. All other components of non-controlling interests are measured at their acquisition-date fair values. Acquisition-related
costs are expensed off when incurred. Goodwill is determined and accounted for in accordance with Note 2j(i).
Prior to 1 January 2010, acquisition of subsidiaries and other business combinations were accounted for using the purchase
method. Acquisition-related costs were capitalised. Non-controlling interests were measured at the proportionate share of the
acquirees net identifiable assets. Where business combinations were achieved in stages, fair value adjustments to previously
held interests were recognised in equity. Contingent consideration was recognised only if the Group had a present obligation and
the economic outflow was more likely than not to occur and could be reliably measured. Goodwill was adjusted for subsequent
measurements of the contingent consideration.
In the Banks separate financial statements, investment in subsidiaries is stated at cost less allowance for impairment, if any,
determined on an individual basis.
(d) Associates and joint ventures

Associates are entities, not being subsidiaries or joint ventures, in which the Group has significant influence. This generally
coincides with the Group having between 20% and 50% of the voting power or representation on the board of directors. Joint
ventures are entities whereby the Group and its joint venture partners enter into a contractual arrangement to undertake an
economic activity which is jointly controlled and none of the parties involved unilaterally has control over the entities.
The Groups investment in associates and joint ventures is accounted for using the equity method from the date the Group obtains
significant influence or joint control over the entities until the date such significant influence or joint control ceases. Unrealised
gains on transactions with associates and joint ventures are eliminated to the extent of the Groups interest in the entities.
Unrealised losses are also eliminated unless they relate to impairment of the assets transferred. Adjustments are made to align
the accounting policies of the associates and joint ventures to those of the Group.
Under the equity method, the Groups investment in associates and joint ventures is carried in the balance sheet at cost (including
goodwill on acquisition), plus post-acquisition changes in the Groups share of net assets of the associates and joint ventures, less
allowance for impairment, if any, determined on an individual basis. The Group recognises its share of the results of operations
and changes in other comprehensive income of the associates and joint ventures in the consolidated income statement and in
equity respectively. Where the share of losses of an associate or joint venture exceeds the Groups interest in the associate or joint
venture, such excess is not recognised in the consolidated income statement.
Upon loss of significant influence over the associates or joint control over the joint ventures, any resulting gain or loss is recognised
in the income statement and the related share of reserves is accounted for in the same manner as if the associates or joint
ventures have directly disposed of the related assets and liabilities. Any retained investment is measured at its fair value.


(d) Associates and joint ventures (continued)
In the Banks separate financial statements, investment in associates and joint ventures is stated at cost less allowance for
impairment, if any, determined on an individual basis.
(e) Foreign currencies

(i) Foreign currency transactions
On initial recognition, transactions in foreign currencies are recorded in the respective functional currencies of the Bank and
its subsidiaries at the exchange rate ruling at the transaction date. Subsequent to initial recognition, monetary assets and
monetary liabilities denominated in foreign currencies are translated at the closing rate of exchange ruling at the balance
sheet date. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange
rate at the date of the initial transaction. Non-monetary items measured at fair value in a foreign currency are translated
using the exchange rate at the date when the fair value is determined.
Exchange differences arising on the settlement of monetary items or on translating monetary items at balance sheet date are
recognised in the income statement. Exchange differences arising from monetary items that form part of the net investment
in foreign operations, or on foreign currency borrowings that provide a hedge against a net investment in a foreign operation,
are recognised initially in the foreign currency translation reserve in the consolidated balance sheet, and subsequently in the
consolidated income statement on disposal of the foreign operation.
(ii) Foreign operations

Revenue and expenses of foreign operations are translated into Singapore dollars at the weighted average exchange rate
for the financial year which approximates the exchange rate at the transaction date. Foreign operations assets and liabilities
are translated at the exchange rate ruling at the balance sheet date. All resultant exchange differences are recognised in
the foreign currency translation reserve, and subsequently to the consolidated income statement upon disposal of the
foreign operations. In the case of a partial disposal without loss of control of a subsidiary, the proportionate share of the
accumulated exchange differences are not recognised in the income statement but re-attributed to the non-controlling
interests. For partial disposal of an associate or joint venture, the proportionate share of the accumulated exchange
differences is reclassified to income statement.
Goodwill and fair value adjustments arising on the acquisition of foreign operations are recorded in the functional currency
of the foreign operations and translated at the exchange rate ruling at the balance sheet date. For acquisitions prior to
1 January 2005, goodwill and fair value adjustments were recorded in Singapore dollars at the exchange rate prevailing
at the date of acquisition.
(f) Financial assets and financial liabilities

(i) Classification
Financial assets and financial liabilities are classified as follows:
At fair value through profit or loss

Financial instruments are classified at fair value through profit or loss if they are held for trading or designated as such upon
initial recognition.
Financial instruments are classified as held for trading if they are acquired for short-term profit taking. Financial derivatives
are classified as held for trading unless they are designated as hedging instruments.
Financial instruments are designated as fair value through profit or loss if they meet the following criteria:
the designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from
measuring the assets or liabilities on a different basis;
the assets and liabilities are managed on a fair value basis in accordance with a documented risk management or
investment strategy; or
the financial instrument contains an embedded derivative that would otherwise require bifurcation.


(f) Financial assets and financial liabilities (continued)
(i) Classification (continued)
Held-to-maturity
Non-derivative financial assets with fixed or determinable payments and fixed maturity are classified as held-to-maturity
when the Group has the intention and ability to hold the assets till maturity.
Loans and receivables

Non-derivative financial assets with fixed or determinable payments that are not quoted in an active market are classified
as loans and receivables.
Available-for-sale
Non-derivative financial assets that are not classified into any of the preceding categories and are available for sale are
classified in this category.
Non-trading liabilities
Non-derivative financial liabilities that are not held for active trading or designated as fair value through profit or loss are
classified as non-trading liabilities.
(ii) Measurement
Initial measurement
Financial instruments are initially recognised at their fair value plus transaction costs directly attributable to the acquisition
or issuance of the instruments. For financial instruments classified as fair value through profit or loss, transaction costs are
expensed off.
Subsequent measurement
Financial instruments classified as held for trading and designated as fair value through profit or loss are measured at fair
value with fair value changes recognised in the income statement.
Available-for-sale assets are measured at fair value with fair value changes taken to the fair value reserve, and subsequently
to the income statement upon disposal or impairment of the assets.
All other financial instruments are measured at amortised cost using the effective interest method less allowance for impairment.
Interest and dividend on all non-derivative financial instruments are recognised as interest income/expense and dividend
income accordingly.
Fair value determination

Fair values of financial assets and financial liabilities with active markets are determined based on the market bid and ask
prices respectively at the balance sheet date. For financial instruments with no active markets, fair values are established
using valuation techniques such as making reference to recent transactions or other comparable financial instruments,
discounted cash flow method and option pricing models.
(iii) Recognition and derecognition

Financial instruments are recognised when the Group becomes a party to the contractual provision of the instruments. All
regular way purchases and sales of financial assets that require delivery within the period generally established by regulation
or market convention are recognised on the settlement date.
Financial instruments are derecognised when the risks and rewards associated with the instruments are substantially
transferred, cancelled or expired. On derecognition, the difference between the carrying amount of the instruments and
the consideration received/paid, less the accumulated gain or loss that has been recognised in equity are taken to the
income statement.


(f) Financial assets and financial liabilities (continued)
(iv) Impairment
Individual impairment
Financial assets, other than those measured at fair value through profit or loss, are subject to impairment review at each
balance sheet date. Impairment loss is recognised when there is objective evidence such as significant financial difficulty of
the issuer/obligor, significant or prolonged decline in market prices and adverse economic indicators that the recoverable
amount of an asset is below its carrying amount.
Financial assets that are individually significant are assessed individually. Those not individually significant are grouped
together based on similar credit risks and assessed as a portfolio.
For financial assets carried at amortised cost, impairment loss is determined as the difference between the assets carrying
amount and the present value of estimated future cash flows discounted at the original effective interest rate. The loss is
recognised in the income statement.
For available-for-sale assets, impairment loss is determined as the difference between the assets cost and the current fair
value, less any impairment loss previously recognised in the income statement. The loss is transferred from the fair value
reserve to the income statement. For available-for-sale equity instruments, subsequent recovery of the impairment loss is
written back to the fair value reserve.
Financial assets are written off when all avenues of recovery have been exhausted.
Collective impairment
Collective impairment is made for estimated losses inherent in but not currently identifiable to the individual financial assets.
The allowance is made based on managements experience and judgement and taking into account country and portfolio
risks. A minimum of 1% of credit exposure net of collaterals and individual impairment is maintained by the Group in
accordance with the transitional provision set out in MAS Notice 612.
(g) Financial derivatives

Financial derivatives with positive and negative fair values are presented as assets and liabilities in the balance sheet
respectively. Derivatives embedded in other financial instruments are accounted for separately as derivatives if their economic
characteristics and risks are not closely related to those of the host contracts and the host contracts are not carried at fair
value through profit or loss.
(h) Hedge accounting

(i) Fair value hedge
Fair value changes of the hedging instrument are recognised in the income statement. Fair value changes of the hedged
item attributable to the hedged risk are taken to the income statement with corresponding adjustment made to the carrying
amount of the hedged item. The adjustment is amortised over the expected life of the hedged item when the hedge is
terminated or no longer meets the hedge accounting criteria.
(ii) Hedge of net investment in a foreign operation

Fair value changes of the hedging instrument relating to the effective portion of the hedge are taken to the foreign currency
translation reserve while those relating to the ineffective portion are recognised in the income statement. The amount taken
to the reserve is transferred to the income statement upon disposal of the foreign operation.


(i) Investment properties and fixed assets
Investment properties and fixed assets are stated at cost less accumulated depreciation and allowance for impairment.
Investment properties are properties held for rental income and/or capital appreciation while owner-occupied properties are those
for office use.
Freehold land and leasehold land exceeding 99 years tenure are not depreciated. Other leasehold land is depreciated on a
straight-line basis over the lease period. Buildings are depreciated on a straight-line basis over 50 years or the lease period,
whichever is shorter. Other fixed assets are depreciated on a straight-line basis over their expected useful lives of five to ten years.
The expected useful life, depreciation method and residual value of investment properties and fixed assets are reviewed annually.
Investment properties and fixed assets are reviewed for impairment when events or changes in circumstances indicate that their
recoverable amounts, being the higher of fair value less cost to sell and value in use, may be below their carrying amounts.
Investment properties and fixed assets are derecognised upon disposal and the resulting gain or loss is recognised in the
income statement.
(j) Intangible assets

(i) Goodwill
Goodwill in a business combination represents the excess of (a) the consideration transferred, the amount of any non-
controlling interest in the acquiree and the acquisition-date fair value of any previously held equity interest in the acquiree
over (b) the net fair value of the identifiable assets acquired and liabilities and contingent liabilities assumed. Where (b)
exceeds (a) and the measurement of all amounts has been reviewed, the gain is recognised in the income statement.
Prior to 1 January 2010, goodwill in a business combination represented the excess of acquisition cost over net fair value
of the identifiable assets acquired and liabilities and contingent liabilities assumed.
After initial recognition, goodwill is measured at cost less accumulated impairment losses, if any.
Goodwill is reviewed for impairment annually or more frequently if the circumstances indicate that its carrying amount
may be impaired. At the date of acquisition, goodwill is allocated to the cash-generating units (CGU) expected to benefit
from the synergies of the business combination. The Groups CGU correspond with the operating segments reported in
Note 40a. Where the recoverable amount, being the higher of fair value less cost to sell and value in use, of a CGU is below
its carrying amount, the impairment loss is recognised in the income statement and subsequent reversal is not allowed.
(ii) Other intangible assets

Other intangible assets acquired are measured at cost on initial recognition. Subsequent to initial recognition, they are
measured at cost less accumulated amortisation and impairment losses, if any.
For intangible assets with finite useful lives, they are amortised on a straight-line basis over the estimated useful lives and
assessed for impairment whenever there is an indication of impairment. The amortisation charges are recognised in the
income statement. The useful life and amortisation method are reviewed annually.
Intangible assets with indefinite useful lives are not amortised but reviewed for impairment annually or more frequently if the
circumstances indicate that the recoverable amounts, being the higher of fair value less cost to sell and value in use, may
be below their carrying amounts.


(k) Tax
(i) Current tax
Current tax is measured at the amount expected to be recovered from or paid to the tax authorities. The tax rate and tax
law applied are those that are enacted or substantively enacted by the balance sheet date.
(ii) Deferred tax

Deferred tax is provided using the liability method on all significant temporary differences between the tax bases and
carrying amounts of assets and liabilities. Deferred tax is measured at the tax rate that is expected to apply when the assets
are realised or the liabilities are settled, based on the tax rate and tax law that have been enacted or substantively enacted
by the balance sheet date.
Deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which
the deductible temporary differences can be utilised. Deferred tax assets are offset against deferred tax liabilities if a legally
enforceable right to set off current tax assets against current tax liabilities exists and the deferred taxes relate to the same
taxable entity and tax authority.
Deferred tax is not provided for temporary differences arising from initial recognition of goodwill or of an asset or liability
that does not affect accounting or taxable profit, and taxable temporary differences related to investments in subsidiaries,
associates and joint ventures where the timing of the reversal of the temporary differences can be controlled and it is
probable that the temporary differences will not reverse in the foreseeable future.
Deferred tax is taken to equity for gains and losses recognised directly in equity.
(l) Provisions
Provisions are recognised when the Group has a present legal or constructive obligation where an outflow of resources to settle
the obligation is probable and a reliable estimate can be made.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. When an outflow of
resources to settle the obligation is no longer probable, the provision is reversed.
(m) Revenue recognition

Interest income is recognised using the effective interest method.
Dividend income is recognised when the right to receive it is established.
Fee and commission income is recognised when services are rendered. For services that are provided over a period of time, fee
and commission income is recognised over the service period.
Rental income is recognised on a time proportion basis.
(n) Employee compensation/benefits

Base pay, cash bonuses, allowances, commissions and defined contributions under regulations are recognised in the income
statement when incurred.
Leave entitlements are recognised when they accrue to employees. Provision for leave entitlements is made based on contractual
terms with adjustment for expected attrition.
Cost of share-based compensation is expensed to the income statement over the vesting period with corresponding increase
in the share-based compensation reserve. The estimated number of grants to be ultimately vested and its financial impact are
reviewed on the balance sheet date and adjustments made accordingly to reflect changes in the non-market vesting conditions.


(o) Dividend payment
Dividends are accounted for as an appropriation of retained earnings. Interim dividends on ordinary shares and dividends on
preference shares are recorded when declared payable while final dividends on ordinary shares are recognised upon approval of
equity holders.
(p) Repurchase and reverse repurchase agreements

Repurchase agreements (Repo) are treated as collateralised borrowing and the amounts borrowed are reported under deposits
and balances of banks and non-bank customers accordingly. The assets sold under Repo are classified as assets pledged in the
balance sheet.
Reverse Repo are treated as collateralised lending and the amounts lent are reported under placements and balances with banks
and loans to non-bank customers accordingly.
The difference between the amounts received and paid under Repo and reverse Repo are accounted for as interest expense and
interest income respectively.
(q) Treasury shares

Ordinary shares reacquired are accounted for as treasury shares and the consideration paid including directly attributable costs
are presented as a component within equity until they are cancelled, sold or reissued. Upon cancellation, the cost of treasury
shares is deducted against share capital or retained earnings accordingly. Gain or loss from subsequent sale or reissue of treasury
shares is recognised in equity.
(r) Significant accounting estimates and judgements

Preparation of the financial statements in conformity with FRS requires certain accounting estimates and judgements to be made.
Areas where such estimates and judgements could have significant effects on the financial statements are as follows:
Individual impairment of financial assets assessment of the timing and amount of future cash flows and collateral value and
determination of prolonged decline in market prices.
Collective impairment of financial assets assessment of country, industry and other portfolio risk, historical loss experience
and economic indicators.
Impairment review of goodwill projection of recoverable amount and determination of growth rates and discount rates.
Fair valuation of financial instruments selection of valuation models and data inputs for financial instruments with no
active markets.
Provision of income taxes interpretation of tax regulations on certain transactions and computations.
3. Interest income
The Group The Bank

2011 2010 2011 2010
$000 $000 $000 $000
Loans to non-bank customers 4,311,273 3,806,411 2,432,260 2,308,678

Placements and balances with banks 546,812 417,280 310,928 287,993
Government treasury bills and securities 307,870 250,455 195,086 166,697
Trading and investment securities 474,549 519,446 422,986 481,559
5,640,504 4,993,592 3,361,260 3,244,927
Of which, interest income on:

Impaired financial assets 29,263 35,822 21,709 17,716
Financial assets at fair value through profit or loss 135,959 98,112 59,746 56,407

4. Interest expense
The Group The Bank

2011 2010 2011 2010
$000 $000 $000 $000
Deposits of non-bank customers 1,513,888 1,100,532 654,035 541,920

Deposits and balances of banks and debts issued 448,659 361,120 389,477 372,042
1,962,547 1,461,652 1,043,512 913,962
Of which, interest expense on financial liabilities at

fair value through profit or loss 18,274 14,564 14,971 14,360
5. Fee and commission income
The Group The Bank

2011 2010 2011 2010
$000 $000 $000 $000
Credit card 230,987 194,380 156,010 127,403

Fund management 97,650 125,462 3,633 3,714
Investment-related 208,117 191,369 149,347 154,600
Loan-related 370,011 284,795 291,133 227,488
Service charges 100,043 91,252 67,871 60,528
Trade-related 249,154 209,704 166,275 140,165
Other 62,112 66,328 13,062 13,838
1,318,074 1,163,290 847,331 727,736
Of which, fee and commission on financial assets and

financial liabilities at fair value through profit or loss 1,023 3 1,023 3
6. Other operating income
The Group The Bank

2011 2010 2011 2010
$000 $000 $000 $000
Trading income 84,056 71,414 81,931 52,804

Non-trading income
Financial instruments at fair value through profit or loss 105,865 173,155 17,681 129,223
Available-for-sale assets and other 202,342 421,763 185,208 368,652
Net gain/(loss) from:
Disposal of investment properties 15,962 15,904 3,920 1,523
Disposal of fixed and other assets 8,110 6,594 (850) (85)
Disposal/liquidation of subsidiaries/associates 435 123,774 432 225,106
Other 98,425 94,849 87,264 89,449
515,195 907,453 375,586 866,672

7. Staff costs
The Group The Bank

2011 2010 2011 2010
$000 $000 $000 $000
Salaries, bonus and allowances 1,117,817 1,030,583 607,589 597,520

Employers contribution to defined contribution plans 94,570 80,536 56,020 48,473
Share-based compensation 30,983 19,219 22,595 14,486
Other 159,813 111,746 62,573 51,444
1,403,183 1,242,084 748,777 711,923
Of which, directors remuneration 18,930 19,598 6,361 8,019
8. Other operating expenses
The Group The Bank

2011 2010 2011 2010
$000 $000 $000 $000
Revenue-related 510,601 478,891 265,758 264,902

Occupancy-related 241,130 219,500 163,486 151,255
IT-related 150,082 172,877 157,462 173,563
Other 145,471 144,406 67,553 76,885
1,047,284 1,015,674 654,259 666,605
Of which:
Chairman/directors fees 5,285 5,375 3,927 3,888
Depreciation of assets 115,628 137,067 68,368 84,519
Rental expenses 94,658 80,269 68,501 60,540
Auditors remuneration paid/payable to:
Auditors of the Bank 2,154 1,971 1,562 1,444
Affiliates of auditors of the Bank 1,961 2,124 628 422
Other auditors 164 232 6 108
Non-audit fees paid/payable to:
Auditors of the Bank 217 293 217 285
Affiliates of auditors of the Bank 107 537 62 476
Other auditors 198
Expenses on investment properties 44,348 42,508 30,474 29,626

9. Impairment charge/(write-back) on loans and other assets
The Group The Bank

2011 2010 2011 2010
$000 $000 $000 $000
Individual impairment on:

Loans 162,550 189,858 108,560 122,127
Investment securities (23,878) 19,970 (20,236) 19,764
Other 81,998 28,008 70,879 (1,457)
Collective impairment 302,515 236,001 192,960 188,651
523,185 473,837 352,163 329,085
Included in the impairment charges are the following:

Bad debts written off 33,161 73,706 33,038 70,806
Bad debts recovery (80,646) (102,161) (25,835) (37,252)
10. Tax
Tax charge to the income statements comprises the following:
The Group The Bank

2011 2010 2011 2010
$000 $000 $000 $000
On profit of the financial year

Current tax 568,312 570,019 344,346 367,332
Deferred tax (80,245) (41,012) (7,664) (20,467)
488,067 529,007 336,682 346,865
(Over)/under provision of prior year tax
Current tax (55,823) (91,338) (55,404) (87,827)
Deferred tax (16,400) 22,894 (12,824) 6,854
Effect of change in tax rate 36,896 3 (62)
Share of tax of associates 14,503 19,056
467,243 479,622 268,392 265,892

10. Tax (continued)
Tax charge on profit for the financial year differs from the theoretical amount computed using Singapore corporate tax rate due
to the following factors:
The Group The Bank

2011 2010 2011 2010
$000 $000 $000 $000
Operating profit after amortisation and

Prima facie tax calculated at tax rate of 17% (2010: 17%) 461,517 519,800 382,960 436,306
Effect of:
Income taxed at concessionary rates (25,896) (31,976) (24,922) (31,062)
Different tax rates in other countries 73,350 66,676 25,062 2,502
Losses of foreign operations not offset against
taxable income of Singapore operations 1,336 1,998 1,336 1,998
Income not subject to tax (63,538) (56,451) (72,391) (84,377)
Expenses not deductible for tax 36,081 31,088 24,353 22,208
Other 5,217 (2,128) 284 (710)
Tax expense on profit of the financial year 488,067 529,007 336,682 346,865
11. Earnings per share
Basic and diluted earnings per share (EPS) are determined as follows:
The Group
2011 2010
Profit attributable to equity holders of the Bank ($000) 2,327,003 2,695,851

Less: Dividends on preference shares ($000) 103,011 106,046
Adjusted profit ($000) 2,223,992 2,589,805
Weighted average number of ordinary shares (000)

In issue 1,560,559 1,523,267
Adjustment for potential ordinary shares under share-based compensation plans 3,568 4,655
Diluted 1,564,127 1,527,922
EPS ($)
Basic 1.43 1.70
Diluted 1.42 1.69

12. Share capital
(a) 2011 2010

Number Number
of shares Amount of shares Amount
000 $000 000 $000
Ordinary shares
Issue of shares under scrip dividend scheme 30,355 546,686 35,945 621,420
Treasury shares
Balance at 1 January (17,515) (344,433) (18,175) (357,410)
Share buyback held in treasury (570) (8,827)
Issue of shares under share-based
compensation plans 1,515 29,790 660 12,977
Balance at 31 December (16,570) (323,470) (17,515) (344,433)
Ordinary share capital 1,573,924 3,104,168 1,542,624 2,536,519
Class E non-cumulative non-convertible preference

shares as at 1 January and 31 December 13,200 1,317,411 13,200 1,317,411
Share capital of the Bank 4,421,579 3,853,930
Non-cumulative non-convertible guaranteed SPV-A

preference shares at 1 January and 31 December 5 831,550 5 831,550
Share capital of the Group 5,253,129 4,685,480
Ordinary shares held by associates of the Group 12,282 16,044
(b) The ordinary shares have no par value and were fully paid. The holders of ordinary shares (excluding treasury shares) have
unrestricted rights to dividends, return of capital and voting.
During the financial year, the Bank issued 30,355,000 (2010: 35,945,000) ordinary shares to eligible shareholders who had
elected to participate in the scrip dividend scheme. All newly issued shares rank pari passu in all respects with the previously
issued shares.
(c) During the financial year, the Bank purchased 570,000 (2010: nil) UOB ordinary shares in the open market at an average price of
$15.48 (2010: nil) per share, amounting to total cash consideration of $8,827,000 (2010: nil). These shares were held in treasury.
(d) During the financial year, the Bank issued 1,515,000 (2010: 660,000) treasury shares to participants of the share-based
compensation plans.

12. Share capital (continued)
(e) The Class E non-cumulative non-convertible preference shares with liquidation preference of S$100 per share were issued by the
Bank on 15 September 2008. The shares are perpetual securities with no fixed maturity. Subject to the approval of MAS, they may
be redeemed at the option of the Bank, in whole but not in part, for cash, (a) on 15 September 2013, 15 September 2018 or on
each dividend payment date thereafter, or (b) in the event of certain changes in the tax laws of Singapore, or (c) on the occurrence
of certain events.
Dividend is payable semi-annually on 15 March and 15 September of each year at a fixed annual rate of 5.05% of the liquidation
preference, subject to declaration by the Board of Directors. In the event any dividend on the Class E preference shares is not
paid, the Bank shall not pay, and shall not permit any of its subsidiaries, other than a banking subsidiary, to pay any dividend on
or repurchase any of its securities that rank pari passu or junior to the Class E preference shares.
(f) The non-cumulative non-convertible guaranteed SPV-A preference shares of US$0.01 each with liquidation preference of
US$100,000 per share were issued on 13 December 2005 by the Bank via its wholly-owned subsidiary, UOB Cayman I
Limited. The entire proceeds were used by the subsidiary to subscribe for the US$0.5 billion subordinated note (Note 19b(v))
issued by the Bank.
The shares are perpetual securities with no maturity date. They are redeemable in whole but not in part, (a) at the discretion of the
subsidiary for cash on any dividend payment date on or after 15 March 2016 or (b) at the discretion of the Bank, for cash or for one
Class A preference share per SPV-A preference share in the event of certain changes in the tax laws of Singapore or the Cayman
Islands, or on any day after 13 December 2011 on the occurrence of certain special events. The SPV-A preference shares will be
automatically redeemed upon the occurrence of certain specific events.
The shares are guaranteed by the Bank on a subordinated basis in respect of dividends and redemption payments. In the event any
dividend or guaranteed payment with respect to the shares is not paid in full, the Bank and its subsidiaries (other than those carrying
on banking business) that have outstanding preference shares or other similar obligations that constitute Tier 1 capital of the Group
on an unconsolidated basis are estopped from declaring and paying any dividend or other distributions in respect of their ordinary
shares or any other security or obligation of the Group ranking pari passu with or junior to the subordinated guarantee.
Dividends on the shares are payable at the sole discretion of the Bank semi-annually at an annual rate of 5.796% of the liquidation
preference from 15 March 2006 to and including 15 March 2016. After 15 March 2016, dividends are payable quarterly at a
floating rate per annum equal to the three-month LIBOR plus 1.745%.
(g) The Class E preference shares and SPV-A preference shares qualify as Tier 1 capital for the calculation of the Group's capital
adequacy ratios.
(h) As at 31 December 2011 and 2010, the Bank has the following unissued non-cumulative non-convertible preference shares:
Number of shares Liquidation preference per share

000 000
Class A 20 US$100
Class B 200 S$10
Class C 40 EUR50
In relation to the issue of the SPV-A preference shares (Note 12f), 5,000 Class A preference shares have been provisionally allotted
to the holders of the SPV-A preference shares on a one-for-one basis.

13. Retained earnings
(a) The Group The Bank

2011 2010 2011 2010
$000 $000 $000 $000

Profit for the financial year attributable to equity holders
of the Bank 2,327,003 2,695,851 1,984,316 2,300,614
Transfer to other reserves (326,096) (318,894) (300,000) (300,000)
Dividends
Ordinary shares
Final dividend of 40 cents one-tier tax-exempt
(2010: 40 cents one-tier tax-exempt) and
Special dividend of 10 cents one-tier
tax-exempt (2010: nil) per share paid in
respect of prior financial year (771,212) (602,320) (771,212) (602,320)
Interim dividend of 20 cents one-tier
tax-exempt (2010: 20 cents one-tier
tax-exempt) per share paid in respect
of the financial year (314,606) (305,987) (314,606) (305,987)
Semi-annual dividends at 5.796% per annum on
non-cumulative non-convertible guaranteed
SPV-A preference shares (36,351) (39,386)
Semi-annual dividends at 5.05% per annum on
Class E non-cumulative non-convertible
preference shares (66,660) (66,660) (66,660) (66,660)
(1,188,829) (1,014,353) (1,152,478) (974,967)
(b) The retained earnings are distributable reserves except for an amount of $451,765,000 (2010: $498,282,000), being the Groups
share of revenue reserves of associates which is distributable only upon realisation by way of dividend from or disposal of
investment in the associates.
(c) In respect of the financial year ended 31 December 2011, the directors have proposed a final one-tier tax-exempt dividend of
40 cents per ordinary share amounting to $629,570,000. The proposed dividend will be accounted for in Year 2012 financial
statements upon approval of the equity holders of the Bank.

14. Other reserves
(a) The Group

Foreign
Fair currency Share-based Share of
value translation compensation Merger Statutory General reserves of
reserve reserve reserve reserve reserve reserve associates Other Total
$000 $000 $000 $000 $000 $000 $000 $000 $000
2011
Balance at 1 January 125,010 (578,738) 41,228 3,266,744 3,178,047 3,120,789 189,020 (240,711) 9,101,389
Other comprehensive income for
the financial year attributable to
equity holders of the Bank (107,395) (34,738) (72,572) (214,705)
Transfer from retained earnings 24,371 301,725 326,096
Change in non-controlling interests 31 31
Increase in statutory reserves 794 794
Issue of treasury shares under
share-based compensation plans (21,428) (8,362) (29,790)
Balance at 31 December 17,615 (613,476) 51,367 3,266,744 3,203,212 3,422,514 116,448 (249,042) 9,215,382
2010
Balance at 1 January (193,128) (462,666) 35,285 3,266,744 3,165,738 2,813,580 226,128 (240,536) 8,611,145
the financial year attributable to
equity holders of the Bank 318,138 (116,072) (37,108) 164,958
Transfer from/(to) retained earnings 12,309 307,209 (624) 318,894
Change in non-controlling interests 138 138
Issue of treasury shares under
share-based compensation plans (13,288) 311 (12,977)
Balance at 31 December 125,010 (578,738) 41,228 3,266,744 3,178,047 3,120,789 189,020 (240,711) 9,101,389
The Bank
Foreign
Fair currency Share-based
value translation compensation Merger Statutory General
reserve reserve reserve reserve reserve reserve Other Total
$000 $000 $000 $000 $000 $000 $000 $000
2011
Balance at 1 January 114,616 (76,052) 41,228 3,266,744 2,752,922 2,630,499 432 8,730,389
the financial year (68,691) 1,967 (66,724)
Transfer from retained earnings 300,000 300,000
compensation plans (21,428) (8,362) (29,790)
Balance at 31 December 45,925 (74,085) 51,367 3,266,744 2,752,922 2,930,499 (7,930) 8,965,442
2010
Balance at 1 January (190,394) (58,915) 35,285 3,266,744 2,752,922 2,330,499 121 8,136,262
the financial year 305,010 (17,137) 287,873
Transfer from retained earnings 300,000 300,000
compensation plans (13,288) 311 (12,977)
Balance at 31 December 114,616 (76,052) 41,228 3,266,744 2,752,922 2,630,499 432 8,730,389

14. Other reserves (continued)
(b) Fair value reserve contains cumulative fair value changes of outstanding available-for-sale assets.
(c) Foreign currency translation reserve represents differences arising from the use of year end exchange rates versus historical rates
in translating the net assets of foreign operations, net of effective portion of the fair value changes of related hedging instruments.
(d) Share-based compensation reserve reflects the Banks and the Groups commitments under the share-based compensation plans.
(e) Merger reserve represents the premium on shares issued in connection with the acquisition of Overseas Union Bank Limited.
(f) Statutory reserve is maintained in accordance with the provisions of applicable laws and regulations. This reserve is non-
distributable unless otherwise approved by the relevant authorities.
Under the Banking (Reserve Fund) (Transitional Provision) Regulations 2007, the Bank may distribute or utilise its statutory reserve
provided that the amount distributed or utilised for each financial year does not exceed 20% of the reserve as at 30 March 2007.
(g) A certain amount of retained earnings is transferred to general reserve in each financial year. The general reserve has not been
earmarked for any specific purpose.
(h) Share of reserves of associates comprises the Groups share of associates post-acquisition revenue reserve at 1 January 1998
and other reserves, adjusted for goodwill arising from acquisition of associates prior to 1 January 2001. These reserves are non-
distributable until they are realised by way of dividend from or disposal of investment in the associates.
The Groups share of profit of associates is included in the retained earnings with effect from 1 January 1998.
(i) Other reserves include amounts transferred from retained earnings pertaining to gains on sale of investments by certain subsidiaries
in accordance with their memorandums and articles of association, bonus shares issued by subsidiaries, gains and losses on
issue of treasury shares under the share-based compensation plans, as well as the difference between consideration paid and
interest acquired from non-controlling interests of subsidiaries.

15. Classification of financial assets and financial liabilities
(a) The Group

Designated
as fair value Loans and
through receivables/
Held for profit or Available- amortised
trading loss for-sale cost Total
$000 $000 $000 $000 $000
2011
Cash, balances and placements with
central banks 379,304 1,741,937 24,665,020 26,786,261
Singapore Government treasury bills
and securities 531,287 9,120,812 9,652,099
Other government treasury bills
and securities 2,187,424 6,000,202 8,187,626
Trading securities 271,335 271,335
Placements and balances with banks 162,677 1,263,967 15,524,412 16,951,056
Loans to non-bank customers 22,422 63,407 141,105,456 141,191,285
Derivative financial assets 6,256,893 6,256,893
Assets pledged 2,526,169 2,526,169
Investment securities
Debt 939,504 9,683,013 316,410 10,938,927
Equity 2,831,471 2,831,471
Other assets 813,785 41,704 2,461,687 3,317,176
Total financial assets 10,602,705 961,926 33,272,682 184,072,985 228,910,298
Non-financial assets 8,047,447
Total assets 236,957,745
Deposits and balances of banks,

non-bank customers
and subsidiaries 833,587 1,270,281 187,106,832 189,210,700
Bills and drafts payable 1,729,947 1,729,947
Derivative financial liabilities 7,066,549 7,066,549
Other liabilities 403,549 2,508,021 2,911,570
Debts issued 20,304 11,765,634 11,785,938
Total financial liabilities 8,303,685 1,290,585 203,110,434 212,704,704
Non-financial liabilities 1,109,073
Total liabilities 213,813,777

15. Classification of financial assets and financial liabilities (continued)
The Group
Designated
Held for profit or Available- amortised Held-to-
trading loss for-sale cost maturity Total
$000 $000 $000 $000 $000 $000
2010
central banks 679,028 1,156,039 28,907,522 30,742,589
and securities 807,229 11,401,250 12,208,479
Other government treasury bills
and securities 2,355,148 26,542 5,139,357 7,521,047
Placements and balances with banks 61,398 862,301 10,531,165 11,454,864
Assets pledged 36,656 6,913,317 6,949,973
Debt 1,057,609 10,907,463 626,668 20,619 12,612,359
Equity 3,026,865 3,026,865
Other assets 35,714 2,918,869 2,954,583
Total financial assets 9,640,285 1,162,855 39,450,843 155,336,858 20,619 205,611,460

non-bank customers
and subsidiaries 612,799 862,186 172,686,075 174,161,060
Bills and drafts payable 1,288,494 1,288,494
Debts issued 25,639 6,237,467 6,263,106
Total financial liabilities 6,825,206 887,825 183,587,074 191,300,105
Non-financial liabilities 824,823

The Bank
Designated
$000 $000 $000 $000 $000
2011
central banks 191,824 1,136,551 14,949,933 16,278,308
and securities 531,287 9,059,782 9,591,069
Other government treasury bills and securities 618,970 3,520,546 4,139,516
Placements and balances with banks 147,188 1,263,967 12,759,331 14,170,486
Placements with and advances to subsidiaries 38,537 5,653,973 5,692,510
Assets pledged 2,526,169 2,526,169
Debt 725,511 8,639,735 316,410 9,681,656
Equity 2,537,724 2,537,724
Other assets 813,785 10,014 1,755,621 2,579,420
Deposits and balances of banks, non-bank

customers and subsidiaries 836,323 1,108,456 152,262,122 154,206,901
Bills and drafts payable 273,202 273,202
Debts issued 20,304 6,403,576 6,423,880
Total financial liabilities 7,659,444 1,128,760 160,032,920 168,821,124

The Bank
Designated
$000 $000 $000 $000 $000
2010
central banks 501,241 715,990 23,894,563 25,111,794
and securities 807,229 11,281,231 12,088,460
Other government treasury bills and securities 919,993 26,542 2,331,665 3,278,200
Placements and balances with banks 862,301 8,333,187 9,195,488
Placements with and advances to subsidiaries 2,869,330 2,869,330
Assets pledged 36,656 6,913,317 6,949,973
Debt 882,928 9,900,879 626,668 11,410,475
Equity 2,789,439 2,789,439
Other assets 32,301 2,282,561 2,314,862
Deposits and balances of banks, non-bank

customers and subsidiaries 614,951 847,169 142,546,087 144,008,207
Bills and drafts payable 182,949 182,949
Debts issued 25,639 6,139,472 6,165,111
Total financial liabilities 6,373,299 872,808 150,765,179 158,011,286
(b) Certain financial derivatives were designated as hedging instruments for fair value hedges as set out in Note 35a.


(c) For the financial instruments designated as fair value through profit or loss, the amounts receivable/payable at maturity are
as follows:
The Group The Bank
2011 2010 2011 2010
$000 $000 $000 $000
Financial assets
Other government treasury bills and securities 25,644 25,644
Loans to non-bank customers 21,387 75,543 21,387 75,543
Investment debt securities 946,055 1,046,445 741,168 883,474
967,442 1,147,632 762,555 984,661
Financial liabilities
Deposits and balances of banks, non-bank customers
and subsidiaries 1,269,849 882,545 1,106,689 865,970
Debts issued 20,850 26,499 20,850 26,499
1,290,699 909,044 1,127,539 892,469
(d) Included in the available-for-sale assets as at 31 December 2011 were investment equity securities of $860,604,000
(2010: $754,674,000) at the Bank and $894,582,000 (2010: $790,572,000) at the Group that were carried at cost as their fair
values could not be reliably measured. These securities were acquired for long-term investment purpose.
(e) Fair values of the financial instruments carried at cost or amortised cost are assessed as follows:
For cash, balances, placements and deposits of central banks, banks and subsidiaries, deposits of non-bank customers
with short-term or no stated maturity, as well as interest and other short-term receivables and payables, fair values are
expected to approximate the carrying amounts.
For loans and deposits of non-bank customers, non-subordinated debts issued and investment debt securities, fair values
are estimated based on independent broker quotes or using discounted cash flow method.
For subordinated notes issued, fair values are determined based on quoted market prices.
Except for the following items, fair values of the financial instruments carried at cost or amortised cost were assessed to be not
materially different from their carrying amounts.
The Group The Bank

Carrying Carrying
amount Fair value amount Fair value
$000 $000 $000 $000
2011
Investment debt securities 316,410 327,869 316,410 327,869
Debts issued 11,765,634 11,657,079 6,403,576 6,295,021
2010
Debts issued 6,237,467 6,080,913 6,139,472 5,998,183

(f) The Group classified financial instruments carried at fair value by level of the following fair value measurement hierarchy:
Level 1 Unadjusted quoted prices in active markets for identical financial instruments
Level 2 Inputs other than quoted prices that are observable either directly or indirectly
Level 3 Inputs that are not based on observable market data
The Group
2011 2010
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
$000 $000 $000 $000 $000 $000
Cash, balances and placements

with central banks 2,121,241 1,835,067
Singapore Government treasury
bills and securities 9,652,099 12,208,479
Other government treasury
Placements and balances
with banks 1,426,644 923,699
Loans to non-bank customers 85,829 87,241
Derivative financial assets 1,103,717 5,153,176 1,060,700 4,502,330
Assets pledged 707,221 1,818,948 4,946,406 2,003,567
Debt 8,021,281 2,543,039 58,197 8,634,293 3,285,706 45,073
Equity 1,122,627 791,594 22,668 1,549,583 653,308 33,402
Other assets 836,505 18,984 35,714
29,988,240 13,873,626 80,865 36,181,259 13,203,677 78,475
Total financial assets carried

at fair value 43,942,731 49,463,411

non-bank customers
and subsidiaries 2,103,868 1,474,985
Derivative financial liabilities 1,312,169 5,754,380 887,959 4,854,838
Other liabilities 309,765 93,784 469,610
Debts issued 20,304 25,639
1,621,934 7,972,336 1,357,569 6,355,462
Total financial liabilities carried

at fair value 9,594,270 7,713,031

The Bank
2011 2010
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
$000 $000 $000 $000 $000 $000

with central banks 1,328,375 1,217,231
Singapore Government treasury
Other government treasury
with banks 1,411,155 862,301
Loans to non-bank customers 85,829 87,241
Placements with and advances
to subsidiaries 38,537
Derivative financial assets 990,138 4,974,278 872,931 4,427,926
Assets pledged 707,221 1,818,948 4,946,406 2,003,567
Debt 7,244,604 2,081,904 38,738 8,275,877 2,496,030 11,900
Equity 1,028,689 628,632 19,799 1,437,724 568,953 28,088
Other assets 823,799 32,301
24,817,102 12,243,292 58,537 31,152,675 11,576,008 39,988
Total financial assets carried

at fair value 37,118,931 42,768,671

non-bank customers
and subsidiaries 1,944,779 1,462,120
Derivative financial liabilities 1,167,486 5,345,870 735,151 4,553,625
Other liabilities 309,765 469,572
Debts issued 20,304 25,639
1,477,251 7,310,953 1,204,723 6,041,384
Total financial liabilities carried

at fair value 8,788,204 7,246,107
(g) There was no material movement for the financial instruments measured at Level 3 during the financial year.

16. Deposits and balances of non-bank customers

The Group The Bank
2011 2010 2011 2010
$000 $000 $000 $000
Fixed deposits 95,167,712 77,310,061 66,844,886 56,928,803

Savings deposits 39,944,882 34,840,551 34,461,077 29,358,110
Current accounts 27,992,828 27,261,301 22,927,217 23,060,088
Other 6,355,047 2,887,541 4,673,586 2,379,984
169,460,469 142,299,454 128,906,766 111,726,985
17. Other liabilities

The Group The Bank
2011 2010 2011 2010
$000 $000 $000 $000
Accrued interest payable 396,894 268,629 222,248 170,543

Accrued operating expenses 474,299 526,849 259,402 330,362
Sundry creditors 2,193,987 2,734,910 734,987 1,486,310
Other 303,745 406,717 351,937 438,877
3,368,925 3,937,105 1,568,574 2,426,092
18. Deferred tax

Deferred tax comprises the following:
The Group The Bank
2011 2010 2011 2010
$000 $000 $000 $000
Deferred tax liabilities on:

Unrealised gain on available-for-sale assets 5,840 27,268 742 15,679
Accelerated tax depreciation 54,916 50,125 45,080 41,457
Fair value of depreciable assets acquired in
business combination 44,982 45,564 30,333 30,889
Other 22,329 10,681 20,081 1,305
128,067 133,638 96,236 89,330
Amount offset against deferred tax assets (93,852) (108,250) (77,953) (88,658)
34,215 25,388 18,283 672
Deferred tax assets on:

Unrealised loss on available-for-sale assets 14,596 1,728 14,273 3
Allowance for impairment 261,944 244,754 108,583 98,219
Other 151,159 93,110 63,886 31,534
427,699 339,592 186,742 129,756
Amount offset against deferred tax liabilities (93,852) (108,250) (77,953) (88,658)
333,847 231,342 108,789 41,098
Net deferred tax assets 299,632 205,954 90,506 40,426

18. Deferred tax (continued)
Movements in the deferred tax during the financial year are as follows:
The Group The Bank
2011 2010 2011 2010
$000 $000 $000 $000
Balance at 1 January 205,954 223,791 40,426 62,916

Effect of change in tax rate (39,130) (3) 62
Currency translation adjustments (4,257) 2,692 322 471
Credit to income statement 96,645 18,118 20,488 13,613
Credit/(charge) to equity 40,420 (38,644) 29,208 (36,574)
Balance at 31 December 299,632 205,954 90,506 40,426
The Group has not recognised deferred tax asset in respect of tax losses of $17,099,000 (2010: $15,906,000) which can be
carried forward to offset against future taxable income, subject to meeting certain statutory requirements of the relevant tax
authorities. These tax losses have no expiry date except for an amount of $1,717,000 (2010: $1,830,000) which will expire
between the years 2012 and 2030 (2010: 2011 and 2029).
19. Debts issued

2011 2010 2011 2010
$000 $000 $000 $000
Subordinated notes
S$1.3 billion 4.95% subordinated notes due 2016
callable with step-up in 2011 1,300,000 1,300,000
S$1 billion 4.100% subordinated notes due 2019
callable with step-up in 2014 999,347 999,103 999,347 999,103
S$1 billion 3.45% subordinated notes due 2021
callable with step-up in 2016 1,000,000 1,000,000
US$1 billion 4.50% subordinated notes due 2013 1,299,622 1,282,072 1,299,622 1,282,072
US$1 billion 5.375% subordinated notes due 2019
callable with step-up in 2014 1,299,454 1,281,867 1,299,454 1,281,867
US$0.5 billion 5.796% subordinated note 649,850 641,100
RM500 million 4.88% subordinated notes due 2020
with step-up in 2015 204,183 207,343
Unamortised expenses relating to issue of
subordinated notes (3,129) (3,767) (3,129) (3,767)
Total, at amortised cost 4,799,477 5,066,618 5,245,144 5,500,375
Fair value hedge adjustments 284,728 300,240 284,728 300,240
5,084,205 5,366,858 5,529,872 5,800,615

19. Debts issued (continued)

The Group The Bank
2011 2010 2011 2010
$000 $000 $000 $000
Other debts issued

Credit-linked notes
At amortised cost 9,000 9,000 9,000 9,000
Designated as fair value through profit or loss 20,304 9,780 20,304 9,780
Interest rate-linked notes, at amortised cost 2,729 2,693 2,729 2,693
Equity-linked notes
At amortised cost 267,185 208,899 267,185 198,944
Designated as fair value through profit or loss 15,859 15,859
Floating rate notes 591,790 128,220 591,790 128,220
US commercial papers 3,983,907
Other, at amortised cost 1,826,818 521,797 3,000
6,701,733 896,248 894,008 364,496
Total debts issued 11,785,938 6,263,106 6,423,880 6,165,111
(b) Subordinated notes

(i) The S$1 billion 4.100% subordinated notes were issued by the Bank at 99.755% on 24 August 2004 and mature
on 3 September 2019. The notes may be redeemed at par at the option of the Bank, in whole but not in part, on
3 September 2014 or at any interest payment date in the event of certain changes in the tax laws of Singapore,
subject to the approval of MAS and certain other conditions. Interest is payable semi-annually at 4.100% per annum
beginning 3 March 2005. From and including 3 September 2014, interest is payable semi-annually at a fixed rate
per annum equal to the five-year Singapore Dollar Interest Rate Swap (Offer Rate) plus 1.680%.
(ii) The S$1 billion 3.45% subordinated notes were issued by the Bank at par on 1 April 2011 and mature on 1 April 2021.
The notes may be redeemed at par at the option of the Bank, in whole but not in part, on 1 April 2016 or at any interest
payment date in the event of certain changes in the tax laws of Singapore, subject to the approval of MAS and certain
other conditions. Interest is payable semi-annually at 3.45% per annum beginning 1 October 2011. From and including
1 April 2016, interest is payable semi-annually at a fixed rate per annum equal to the five-year Singapore Dollar Swap
(Offer Rate) plus 1.475%.
(iii) The US$1 billion 4.50% subordinated notes were issued by the Bank at 99.96% on 30 June 2003 and mature on
2 July 2013. The notes may be redeemed at par at the option of the Bank, in whole, on notice, in the event of certain
changes in the tax laws of Singapore, subject to the approval of MAS and certain other conditions. Interest is payable
semi-annually at 4.50% per annum beginning 2 January 2004.
(iv) The US$1 billion 5.375% subordinated notes were issued by the Bank at 99.929% on 24 August 2004 and mature
on 3 September 2019. The notes may be redeemed at par at the option of the Bank, in whole but not in part, on
3 September 2014 or at any interest payment date in the event of certain changes in the tax laws of Singapore, subject
to the approval of MAS and certain other conditions. Interest is payable semi-annually at 5.375% per annum beginning
3 March 2005. From and including 3 September 2014, interest is payable semi-annually at a floating rate per annum
equal to the six-month LIBOR plus 1.666%.

19. Debts issued (continued)
(b) Subordinated notes (continued)

(v) The US$0.5 billion 5.796% subordinated note was issued by the Bank at par to UOB Cayman I Limited on 13 December 2005.
It matures on 12 December 2055 which is subject to extension. The note may be redeemed, in whole but not in part, at
the option of the Bank, on 15 March 2016 or any interest payment date thereafter, subject to the approval of MAS and
certain other conditions. Interest is payable semi-annually at 5.796% per annum beginning 15 March 2006. From and
including 15 March 2016, interest is payable quarterly at a floating rate per annum equal to the three-month LIBOR
plus 1.745%.
The S$ and US$ subordinated notes issued by the Bank are unsecured obligations with the US$0.5 billion subordinated note
ranking junior to all other S$ and US$ subordinated notes. All other liabilities of the Bank outstanding at the balance sheet
date rank senior to all the S$ and US$ subordinated notes. Except for the US$0.5 billion subordinated note, the S$ and US$
subordinated notes qualify for Tier 2 capital.
(vi) The RM500 million 4.88% subordinated notes were issued by United Overseas Bank (Malaysia) Bhd (UOBM) on
29 March 2010 and mature on 27 March 2020. The notes may be redeemed at par at the option of UOBM, in whole but
not in part, on 30 March 2015 or at any interest payment date thereafter. Interest is payable semi-annually at 4.88% per
annum beginning 29 September 2010. From and including 30 March 2015, interest is payable semi-annually at 5.88%
per annum.
(c) Other debts issued

(i) The credit-linked notes, with embedded credit default swaps, were issued at par with maturity ranging from 4 November 2012
to 23 September 2015. The notes will be redeemed at face value on the maturity date provided there is no occurrence of a
credit event. If there is an occurrence of a credit event, the underlying assets or the market values of the underlying assets in
cash term, depending on the terms and conditions of the contracts will be delivered to the holders of the notes.
(ii) The interest rate-linked notes, with embedded interest rate derivatives, were issued at par with remaining maturity on
15 August 2015. The periodic payouts and redemptions of the notes are linked to the interest rate indices.
(iii) The equity-linked notes, with embedded equity derivatives, were issued at par with maturity ranging from 23 January 2012
to 20 January 2015. The periodic payments and payouts of the notes at maturity are linked to the closing value of certain
underlying equities or equity indices.
(iv) The floating rate notes comprise mainly notes issued at par with maturity on 5 May 2014. Interest is payable quarterly in
arrears equal to the three-month Bank Bill Swap Reference Rate plus 92 basis points (rounded to four decimal places).
(v) The US commercial papers were issued by US Funding LLC at an average discount of 99.88% with maturity ranging from
3 January 2012 to 14 March 2012. Interest rates of the papers ranged from 0.33% to 0.54% per annum (2010: nil).
(vi) Other comprises mainly unsecured fixed-rate debt papers with maturity ranging from 3 January 2012 to 4 November 2014.
Interest rates of the papers ranged from 1.25% to 5.00% per annum (2010: 1.00% to 3.21% per annum).

20. Cash, balances and placements with central banks

The Group The Bank
2011 2010 2011 2010
$000 $000 $000 $000
Cash on hand 1,403,995 1,463,739 1,171,070 1,220,969

Balances with central banks
Restricted balances 4,390,505 3,599,953 2,953,029 2,608,101
Non-restricted balances 20,991,761 25,678,897 12,154,209 21,282,724
26,786,261 30,742,589 16,278,308 25,111,794
21. Trading securities

The Group The Bank
2011 2010 2011 2010
$000 $000 $000 $000
Quoted securities
Debt 214,902 2,715 111,267 2,715
Equity 21,136 130,820 21,136 130,820
Unquoted securities
Debt 35,297 4,261 35,297
271,335 137,796 167,700 133,535
22. Placements and balances with banks

The Group The Bank
2011 2010 2011 2010
$000 $000 $000 $000
Placements and balances with banks 18,770,004 13,458,431 15,989,434 11,199,055

Less: Amount sold under Repo (1,818,948) (2,003,567) (1,818,948) (2,003,567)
16,951,056 11,454,864 14,170,486 9,195,488
23. Loans to non-bank customers

2011 2010 2011 2010
$000 $000 $000 $000
Loans to non-bank customers (gross) 143,942,663 115,122,230 107,791,476 87,440,489

Individual impairment (Note 23d) (769,560) (930,007) (411,505) (505,322)
Collective impairment (Note 23d) (1,981,818) (1,752,348) (1,529,476) (1,396,966)
Loans to non-bank customers (net) 141,191,285 112,439,875 105,850,495 85,538,201
Comprising:
Trade bills 5,858,313 7,059,998 336,596 2,022,169
Advances to customers 135,332,972 105,379,877 105,513,899 83,516,032
141,191,285 112,439,875 105,850,495 85,538,201

23. Loans to non-bank customers (continued)

(b) Gross loans to non-bank customers analysed by industry
The Group The Bank
2011 2010 2011 2010
$000 $000 $000 $000
Transport, storage and communication 7,041,060 6,709,527 5,819,785 5,981,722

Building and construction 17,515,443 11,506,288 14,481,904 9,723,863
Manufacturing 11,336,373 8,617,106 5,125,790 3,194,684
Financial institutions 23,965,836 18,673,490 21,587,631 16,868,753
General commerce 17,596,878 15,094,360 11,151,050 10,172,441
Professionals and private individuals 18,628,690 14,907,364 13,558,732 11,036,891
Housing loans 40,614,854 33,527,779 30,135,602 25,242,203
Other 7,243,529 6,086,316 5,930,982 5,219,932
143,942,663 115,122,230 107,791,476 87,440,489
(c) Gross loans to non-bank customers analysed by currency

The Group The Bank
2011 2010 2011 2010
$000 $000 $000 $000
Singapore dollar 78,557,373 66,914,936 78,362,710 66,750,280

US dollar 19,791,430 13,854,567 16,875,428 11,908,553
Malaysian ringgit 18,832,456 14,282,487 4,956
Thai baht 7,529,907 6,840,741 608 88
Indonesian rupiah 4,488,151 3,212,959
Other 14,743,346 10,016,540 12,547,774 8,781,568
143,942,663 115,122,230 107,791,476 87,440,489
(d) Movements of allowance for impairment on loans

2011 2010
Individual Collective Individual Collective
impairment impairment impairment impairment
$000 $000 $000 $000
The Group
Balance at 1 January 930,007 1,752,348 973,048 1,569,655
Currency translation adjustments (5,389) (5,305) (24,564) (1,357)
Write-off/disposal (355,723) (219,016)
Net charge to income statement 200,665 234,775 200,539 184,050
Balance at 31 December 769,560 1,981,818 930,007 1,752,348
The Bank
Balance at 1 January 505,322 1,396,966 533,968 1,258,483
Currency translation adjustments 3,637 450 (21,001) (212)
Write-off/disposal (199,053) (100,488)
Balance at 31 December 411,505 1,529,476 505,322 1,396,966

24. Assets pledged/received as collateral
Assets pledged/received as collateral whereby the pledgees have the right by contract or custom to sell or repledge the assets
and the obligation to return them subsequently are as follows:
(a) The Group and The Bank

2011 2010
$000 $000
Assets pledged for Repo transactions, at carrying amount

Singapore Government treasury bills and securities 58,089 605,994
Other government treasury bills and securities 65,543 4,053,722
Placements and balances with banks
Negotiable certificates of deposit 1,668,360 1,858,589
Bankers acceptances 150,588 144,978
Investment securities 583,589 286,690
2,526,169 6,949,973
The amount of the associated liabilities approximates the carrying amount of the assets pledged.
(b) The Group The Bank

2011 2010 2011 2010
$000 $000 $000 $000
Assets received for reverse Repo transactions,

at fair value 1,595,135 976,468 110,842 432,271
Of which, sold or repledged 73,907 157,658 32,373 157,658
25. Investment securities

2011 2010 2011 2010
$000 $000 $000 $000
Quoted securities
Debt 8,801,364 9,077,257 8,018,570 8,712,806
Equity 1,367,928 1,775,670 1,255,878 1,651,836
Unquoted securities
Debt 3,000,206 4,184,866 2,514,890 3,233,746
Equity 1,771,441 1,534,005 1,546,857 1,383,178
Allowance for impairment (Note 29) (586,952) (645,884) (533,226) (494,962)
Investment securities 14,353,987 15,925,914 12,802,969 14,486,604
Less: Amount sold under Repo (583,589) (286,690) (583,589) (286,690)
13,770,398 15,639,224 12,219,380 14,199,914

25. Investment securities (continued)
(b) Investment securities 1 analysed by industry
The Group The Bank

2011 2010 2011 2010
$000 $000 $000 $000
Transport, storage and communication 1,291,268 1,482,848 1,187,747 1,372,546

Building and construction 950,025 1,201,174 897,276 1,149,121
Manufacturing 1,187,208 911,965 874,306 885,524
Financial institutions 8,022,611 9,286,609 7,159,082 8,252,106
General commerce 441,417 638,105 375,775 571,423
Other 2,461,458 2,405,213 2,308,783 2,255,884
14,353,987 15,925,914 12,802,969 14,486,604
1
Include amount sold under Repo.
26. Other assets
The Group The Bank

2011 2010 2011 2010
$000 $000 $000 $000
Interest receivable 638,784 609,753 496,628 480,662

Sundry debtors 1,750,879 2,158,216 1,165,673 1,736,060
Foreclosed properties 223,128 279,572 3,016
Other 1,268,138 531,541 964,899 309,027
Allowance for impairment on other assets (Note 29) (314,588) (241,606) (44,065) (53,639)
3,566,341 3,337,476 2,583,135 2,475,126
27. Investment in associates

2011 2010 2011 2010
$000 $000 $000 $000
Quoted equity securities 127,053 127,053 92,207 92,207

Unquoted equity securities 390,353 377,157 279,523 279,523
517,406 504,210 371,730 371,730
Allowance for impairment (Note 29) (2,686) (237)
Share of post-acquisition reserve 574,864 693,950
1,092,270 1,198,160 369,044 371,493
Market value of quoted equity securities at 31 December 552,049 643,135 520,101 604,853

27. Investment in associates (continued)
(b) The Groups share of the associates financial statements is as follows:
The Group
2011 2010
$000 $000
Total operating income 363,549 467,086

Profit before tax 93,126 139,058
Total assets 2,111,087 2,620,671
Total liabilities 1,007,553 1,425,851
Contingent liabilities 57,200 57,200
(c) The carrying amounts of the Groups investment in associates as at 31 December 2011 and 2010 include goodwill amounting
to $12,045,000.
(d) Major associates of the Group as at the balance sheet date are as follows:
Effective equity interest

Country of of the Group
Name of associate Principal activities incorporation 2011 2010
% %
Quoted associates
United International Securities Limited Investment Singapore 47 47
UOB-Kay Hian Holdings Limited Stockbroking Singapore 40 40
Unquoted associates
Network for Electronic Transfers (Singapore) Pte Ltd Electronic funds transfer Singapore 33 33
United Facilities Private Limited Investment holding Singapore 49 49
28. Investment in subsidiaries
(a) The Bank

2011 2010
$000 $000
Quoted equity securities 45,024 45,024

Unquoted equity securities 5,033,250 5,028,064
5,078,274 5,073,088
Allowance for impairment (Note 29) (315,686) (316,080)
4,762,588 4,757,008
Market value of quoted equity securities at 31 December 113,193 122,834

28. Investment in subsidiaries (continued)
(b) Major subsidiaries of the Group as at the balance sheet date are as follows:
Effective equity interest
Country of of the Group
Name of subsidiary incorporation 2011 2010
% %
Commercial Banking
Far Eastern Bank Limited Singapore 79 78
United Overseas Bank (Malaysia) Bhd Malaysia 100 100
United Overseas Bank (Thai) Public Company Limited Thailand 99.7 99.7
PT Bank UOB Indonesia Indonesia 99 99
United Overseas Bank (China) Limited China 100 100
United Overseas Bank Philippines Philippines 100 100
Merchant Banking
UOB Asia (Hong Kong) Limited Hong Kong 100 100
UOB Australia Limited Australia 100 100
Insurance
United Overseas Insurance Limited Singapore 58 58
UOB Insurance (H.K.) Limited Hong Kong 58 58
Investment
UOB Capital Investments Pte Ltd Singapore 100 100
UOB Capital Management Pte Ltd Singapore 100 100
UOB Holdings Private Limited Singapore 100 100
UOB International Investment Private Limited Singapore 100 100
UOB Property Investments Pte. Ltd. Singapore 100 100
UOB Venture Management (Shanghai) Co., Ltd 1 China 100 100
UOB Holdings (USA) Inc. 2 United States 100 100
Investment Management
UOB Asset Management Ltd Singapore 100 100
UOB Venture Management Private Limited Singapore 100 100
UOB-OSK Asset Management Sdn. Bhd. Malaysia 70 70
UOB Asset Management (Thai) Co., Ltd. Thailand 99.7 99.7
UOB Investment Advisor (Taiwan) Ltd Taiwan 100 100
UOB Global Capital LLC 2 United States 70 70
Funding
UOB Funding LLC 2 United States 100
Gold/Futures Dealing
UOB Bullion and Futures Limited Singapore 100 100
Property
Industrial & Commercial Property (S) Pte Ltd Singapore 100 100
UOB Developments Private Limited Singapore 100 100
PT UOB Property Indonesia 100 100
UOB Realty (USA) Ltd Partnership 2 United States 100 100
Travel
UOB Travel Planners Pte Ltd Singapore 100 100
Note: Except as indicated, all subsidiaries incorporated in Singapore are audited by Ernst & Young LLP, Singapore and those incorporated in overseas are audited by
member firms of Ernst & Young Global.
1
Audited by other auditors.
2
Not required to be audited.

29. Movements of allowance for impairment on investments and other assets
Investment securities Other assets

2011 2010 2011 2010
$000 $000 $000 $000
The Group
Balance at 1 January 645,884 653,904 241,606 256,644
Currency translation adjustments (4,883) (15,207) (2,596) 70
Write-off/disposal (5,737) (64,734) (27,002) (38,220)
Reclassification (92,174) 92,174
Investment Investment in Investment in Other

securities associates subsidiaries assets
$000 $000 $000 $000
The Bank
2011
Balance at 1 January 494,962 237 316,080 53,639
Currency translation adjustments (815) 3 (80)
Write-off/disposal (684) (10,399)
Net charge/(write-back) to income statement 39,763 2,449 (397) 905
2010
Balance at 1 January 442,148 528 313,618 53,322
Currency translation adjustments (15,850) (12) (672)
Transfers 4,080
Write-off/disposal (1,056) (316)
Net charge/(write-back) to income statement 69,720 (291) 227 (528)
Reclassification (1,833) 1,833
Balance at 31 December 494,962 237 316,080 53,639

30. Investment properties
The Group The Bank

2011 2010 2011 2010
$000 $000 $000 $000

Currency translation adjustments (3,396) (6,278) 301 (869)
Additions 44,160 18,019 42,718 14,066
Disposals (26,428) (3,333) (3,693) (4,944)
Depreciation charge (23,286) (19,413) (18,418) (17,869)
(Allowance for)/write-back of impairment 311 410 (312) 941
Transfers 9,173 1,822 18,527 3,154
Represented by:
Cost 1,387,761 1,372,105 1,650,549 1,595,129
Accumulated depreciation (261,692) (246,066) (191,564) (175,578)
Allowance for impairment (140) (644) (1,193) (882)
Net carrying amount 1,125,929 1,125,395 1,457,792 1,418,669
Freehold property 679,549 669,925 1,009,316 959,631

Leasehold property 446,380 455,470 448,476 459,038
1,125,929 1,125,395 1,457,792 1,418,669
Market values of the investment properties of the Bank and the Group as at 31 December 2011 were estimated to be
$2,634 million and $2,993 million (2010: $2,461 million and $2,753 million) respectively. The valuation was performed by internal
valuers with professional qualifications and experience, taking into account market prices and rental of comparable properties.

31. Fixed assets
2011 2010
Owner- Owner-
occupied occupied
properties Other Total properties Other Total
$000 $000 $000 $000 $000 $000
The Group
Balance at 1 January 656,015 363,134 1,019,149 673,505 366,854 1,040,359
Currency translation adjustments (1,950) (4,229) (6,179) (891) 10,779 9,888
Additions 1,453 141,504 142,957 91,966 91,966
Disposals (4,527) (4,527) (893) (4,180) (5,073)
Depreciation charge (10,464) (81,878) (92,342) (15,364) (102,290) (117,654)
Write-back of impairment 388 388 1,485 1,485
Transfers (9,173) (9,173) (1,827) 5 (1,822)
Balance at 31 December 636,269 414,004 1,050,273 656,015 363,134 1,019,149
Represented by:
Cost 813,250 1,397,925 2,211,175 824,776 1,356,327 2,181,103
Accumulated depreciation (175,232) (983,921) (1,159,153) (166,508) (993,193) (1,159,701)
Allowance for impairment (1,749) (1,749) (2,253) (2,253)
Net carrying amount 636,269 414,004 1,050,273 656,015 363,134 1,019,149
Freehold property 482,343 605,583

Leasehold property 153,926 50,432
636,269 656,015
The Bank
Balance at 1 January 547,377 202,782 750,159 557,816 213,176 770,992
Currency translation adjustments 155 (238) (83) (408) (363) (771)
Additions 1,453 79,655 81,108 50,248 50,248
Disposals (1,173) (1,173) (978) (978)
Depreciation charge (6,711) (43,239) (49,950) (7,349) (59,301) (66,650)
(Allowance for)/write-back
of impairment (157) (157) 472 472
Transfers (18,527) (18,527) (3,154) (3,154)
Balance at 31 December 523,590 237,787 761,377 547,377 202,782 750,159
Represented by:
Cost 597,273 828,724 1,425,997 615,412 817,833 1,433,245
Accumulated depreciation (73,237) (590,937) (664,174) (67,745) (615,051) (682,796)
Allowance for impairment (446) (446) (290) (290)
Net carrying amount 523,590 237,787 761,377 547,377 202,782 750,159
Freehold property 478,361 499,428

Leasehold property 45,229 47,949
523,590 547,377

31. Fixed assets (continued)
Market values of the owner-occupied properties of the Bank and the Group as at 31 December 2011 were estimated to be
$1,305 million and $1,994 million (2010: $1,170 million and $1,846 million) respectively. The valuation was performed by internal
valuers with professional qualifications and experience, taking into account market prices and rental of comparable properties.
Other fixed assets comprise mainly computer equipment, application software and furniture and fittings.
32. Intangible assets
(a) The Group

Core Customer
Goodwill deposit base loan base Total
$000 $000 $000 $000
2011
Balance at 1 January 4,191,737 10,992 7,352 4,210,081
Currency translation adjustments (3,556) (55) (38) (3,649)
Amortisation charge (6,282) (4,187) (10,469)
Balance at 31 December 4,188,181 4,655 3,127 4,195,963
Represented by:
Cost 4,188,181 43,548 29,080 4,260,809
Accumulated amortisation (38,893) (25,953) (64,846)
Net carrying amount 4,188,181 4,655 3,127 4,195,963
2010
Balance at 1 January 4,198,083 18,615 12,434 4,229,132
Currency translation adjustments (6,346) (1,034) (689) (8,069)
Amortisation charge (6,589) (4,393) (10,982)
Balance at 31 December 4,191,737 10,992 7,352 4,210,081
Represented by:
Cost 4,191,737 43,996 29,379 4,265,112
Accumulated amortisation (33,004) (22,027) (55,031)
Net carrying amount 4,191,737 10,992 7,352 4,210,081
(b) Goodwill is allocated on the date of acquisition to the reportable operating segments expected to benefit from the synergies
of business combination. The recoverable amount of the operating segments is based on their value in use, computed by
discounting the expected future cash flows of the segments. The key assumptions in computing the value in use include the
discount rates and growth rates applied. Discount rates are estimated based on current market assessments of time value of
money and risks specific to the Group as a whole and to individual countries such as Thailand and Indonesia. Growth rates are
determined based on economic growth forecasts by major countries. Cash flow projections are based on most recent five-year
financial budget approved by management, with projected cash flows discounted at rates ranging from 7% to 16% (2010: 7%
to 13%) and those beyond the five-year period extrapolated using growth rates ranging from 3% to 6% (2010: 4% to 5%).
Impairment is recognised in the income statement when the carrying amount of an operating segment exceeds its recoverable
amount. Management believes that any reasonably possible change in the key assumptions would not cause the carrying amount
of the operating segments to exceed their recoverable amount.
(c) The core deposit base and customer loan base intangibles are amortised over their estimated useful lives of seven years.

33. Contingent liabilities
In the normal course of business, the Bank and the Group conduct businesses involving acceptances, guarantees, performance
bonds and indemnities. The bulk of these liabilities are backed by the corresponding obligations of the customers. No assets of
the Bank and the Group were pledged as security for these contingent liabilities at the balance sheet date.
The Group The Bank

2011 2010 2011 2010
$000 $000 $000 $000
Direct credit substitutes 4,515,079 5,612,002 3,355,938 4,476,940

Transaction-related contingencies 5,422,969 4,686,203 3,882,868 3,446,841
Trade-related contingencies 5,871,671 4,670,057 4,919,562 3,952,004
Other contingent liabilities 11,004 53,145 1,201 34,523
15,820,723 15,021,407 12,159,569 11,910,308

34. Financial derivatives
Financial derivatives, such as forwards, swaps, futures and options, are instruments whose values change in response to the
change in prices of the underlying instruments.
In the normal course of business, the Bank and the Group transact in customised derivatives to meet specific needs of their
customers. The Bank and the Group also transact in these derivatives for proprietary trading purposes, as well as to manage
their assets, liabilities and structural positions. Risks associated with the use of derivatives and policies for managing these risks
are set out in Note 41.
The table below shows the Banks and the Groups financial derivatives and their fair values at the balance sheet date. These
amounts do not necessarily represent future cash flows and amounts at risk of the derivatives.
2011 2010
Contract/ Contract/
notional Positive Negative notional Positive Negative
amount fair value fair value amount fair value fair value
$000 $000 $000 $000 $000 $000
The Group
Foreign exchange contracts
Forwards 31,645,496 211,070 155,321 14,683,473 140,888 151,727
Swaps 87,367,495 884,073 1,122,600 72,087,066 851,002 667,464
Options purchased 9,126,561 100,531 3,127,556 32,968
Options written 9,973,907 102,513 3,330,522 37,130
Interest rate contracts

Swaps 203,172,949 4,128,456 4,549,470 182,739,579 3,063,183 3,249,301
Futures 175,700 55 757 64,133 34 36
Options written 2,424,872 5,420 3,987,009 3,406
Equity-related contracts
Swaps 2,552,665 585,515 585,383 3,134,282 811,896 812,797
Futures 25,596 371
Options purchased 978,120 329,956 1,421,546 635,020
Options written 1,125,006 331,583 1,421,608 637,021
Credit-related contracts
Swaps 311,417 4,073 4,108 243,968 1,658 2,041
Other
Forwards 895,286 2,322 198,236 565,726 10,572 180,472
Swaps 384,829 3,084 11,043 343,873 10,740 1,147
Futures 2,132 3,608 36
Options purchased 5,960 115 1,621 254
Options written 5,960 115 1,628 255
351,224,163 6,256,893 7,066,549 289,010,803 5,563,030 5,742,797

34. Financial derivatives (continued)
2011 2010
Contract/ Contract/
notional Positive Negative notional Positive Negative
amount fair value fair value amount fair value fair value
$000 $000 $000 $000 $000 $000
The Bank
Foreign exchange contracts
Forwards 28,178,205 160,239 93,385 12,928,698 106,047 153,969
Swaps 79,353,604 815,821 1,063,036 65,376,919 753,491 577,573
Options written 9,837,180 100,476 3,261,947 36,571
Interest rate contracts

Swaps 168,556,922 3,958,813 4,329,252 157,918,973 2,947,783 3,058,908
Futures 159,651 8 716 39,183
Options written 2,400,040 5,420 3,957,738 3,402
Equity-related contracts
Swaps 2,083,505 574,839 571,888 3,125,212 811,911 812,480
Futures 25,596 371
Options purchased 948,353 330,016 1,387,008 635,291
Options written 1,094,864 331,680 1,369,927 637,210
Credit-related contracts
Swaps 311,417 4,073 4,108 243,968 1,658 2,041
Other
Forwards 599,452 2,662 2,586 126,160 1,048 5,305
Swaps 784,222 11,744 10,766 243,770 6,612 1,063
Options purchased 901 43 1,621 254
Options written 901 43 1,621 254
304,179,887 5,964,416 6,513,356 254,775,442 5,300,857 5,288,776

35. Hedge accounting

(a) Fair value hedge
Interest rate swaps were contracted to hedge certain of the Banks loans, investment in debt securities and subordinated notes
issued against interest rate risk. As at 31 December 2011, the net fair value of such interest rate swaps was a loss of $134 million
(2010: gain of $67 million). During the financial year, fair value loss of $125 million (2010: loss of $24 million) on the swaps was
recognised in the Banks and the Groups income statements which was offset by an equal amount of fair value gain (2010: gain)
attributable to the interest rate risk on the hedged items.
As at 31 December 2011, non-bank customer deposits of $967 million (2010: $1,210 million) were designated to hedge the
foreign exchange risk arising from certain of the Banks available-for-sale equity securities and the Groups foreign-currency
denominated assets. During the financial year, foreign exchange losses of $55 million (2010: gain of $80 million) and $59 million
(2010: gain of $96 million) on the deposits were recognised in the Banks and the Groups income statements respectively. These
were offset by equal amounts of foreign exchange gains (2010: loss) on the hedged items.
(b) Hedge of net investment in foreign operations

As at 31 December 2011, non-bank customer deposits of $864 million (2010: $777 million) were designated to hedge foreign
exchange risk arising from the Banks foreign operations. During the financial year, no foreign exchange gain or loss (2010: nil)
arising from hedge ineffectiveness was recognised in the Banks and the Groups income statements.
36. Commitments
2011 2010 2011 2010
$000 $000 $000 $000
Undrawn credit facilities 52,349,181 45,828,640 39,909,498 35,180,341

Spot/forward contracts 1,262,160 2,759,659 975,147 1,536,163
Capital commitments 86,667 76,917 65,397 63,449
Operating lease commitments 118,094 121,653 60,851 73,221
Other 205,459 206,971 162,884 197,468
54,021,561 48,993,840 41,173,777 37,050,642
(b) Operating lease commitments

The aggregate minimum lease payments under non-cancellable operating leases at the balance sheet date are as follows:
The Group The Bank
2011 2010 2011 2010
$000 $000 $000 $000
Minimum lease payable

Within 1 year 48,786 51,772 25,224 32,499
Over 1 to 5 years 64,576 67,029 35,507 40,722
Over 5 years 4,732 2,852 120
118,094 121,653 60,851 73,221
Minimum lease receivable

Within 1 year 98,413 100,968 78,289 84,771
Over 1 to 5 years 137,834 186,257 104,271 150,417
Over 5 years 848 5,723 93 4,818
237,095 292,948 182,653 240,006

37. Cash and cash equivalents
Cash equivalents are highly liquid assets that are subject to an insignificant risk of changes in value and are readily convertible into
known amount of cash. Cash and cash equivalents in the consolidated cash flow statement comprise the following:
The Group
2011 2010
$000 $000
Cash on hand 1,403,995 1,463,739

Non-restricted balances with central banks 20,991,761 25,678,897
22,395,756 27,142,636
38. Share-based compensation plans
Share-based compensation plans of the Group comprise the UOB Restricted Share Plan and UOB Share Appreciation Rights Plan.
Description of these plans is set out in the Directors Report. Movements and outstanding balances of these plans are as follows:
UOB Restricted Share Plan and UOB Share Appreciation Rights Plan
The Group and The Bank

Restricted shares
2011 2010
000 000
Balance at 1 January 3,353 3,264

Granted 1,176 1,195
Forfeited/cancelled (178) (469)
Vested (1,409) (637)
Balance at 31 December 2,942 3,353
Share appreciation rights

2011 2010
000 000
Balance at 1 January 8,553 10,419

Granted 4,600 2,651
Forfeited/cancelled (451) (1,832)
Vested (4,404) (2,685)
Exercisable rights
2011 2010
000 000
Balance at 1 January 3,175 617

Vested 4,404 2,685
Forfeited/lapsed (89) (55)
Exercised (417) (72)

38. Share-based compensation plans (continued)
Number of
Fair value per outstanding grants
Year granted Expiry date grant at grant date 2011 2010
$ 000 000
Restricted shares
2008 14 Nov 2010 and 14 Nov 2011 11.16 805
2009 16 Nov 2011 and 16 Nov 2012 18.55 639 1,353
2010 15 Dec 2012 and 15 Dec 2013 16.35 1,132 1,195
2011 15 Dec 2013 and 15 Dec 2014 14.53 1,171
2,942 3,353
Share appreciation rights

2008 14 Nov 2014 2.29 3,352
2009 16 Nov 2015 6.41 1,204 2,550
2010 15 Dec 2016 4.87 2,509 2,651
2011 15 Dec 2017 2.46 4,585
8,298 8,553
Fair values of the restricted shares and share appreciation rights were estimated at the grant date using the Trinomial valuation
methodology. The key assumptions were as follows:
Restricted Share
shares appreciation rights
2011 2010 2011 2010
Exercise price ($) Not applicable 15.67 18.07

Expected volatility (%) 1 22.17 35.87 22.17 35.87
Risk-free interest rate (%) 0.37 0.47 0.51 0.85 0.96 1.89
Contractual life (years) 2 and 3 2 and 3 6 6
Expected dividend yield (%) Managements forecast in line with dividend policy
1
Based on past 3 years historical volatility.

39. Related party transactions

Related parties cover the Groups subsidiaries, associates and their subsidiaries, and key management personnel and their
related parties.
Key management personnel refer to the Banks directors and members of its Management Executive Committee.
All related party transactions of the Group were done in the ordinary course of business and at arms length. In addition to the
information disclosed elsewhere in the financial statements, other related party transactions that may be of interest are as follows:
The Group The Bank

2011 2010 2011 2010
$ million $ million $ million $ million
(a) Interest income

Subsidiaries 57 35
Associates 8 8 8 8
Interest expense
Subsidiaries 21 17
Associates 2 2 1 1
Dividend income
Subsidiaries 187 91
Associates 119 86
Rental income
Subsidiaries 3 3
Associates * * * *
Rental and other expenses
Subsidiaries 90 78
Associates 9 8 4 4
Fee and commission and other income
Subsidiaries 55 72
Associates 15 18 1 1
Placements, loans and advances
Subsidiaries 5,693 2,869
Associates 498 770 487 758
Deposits
Subsidiaries 6,873 2,269
Associates 452 529 434 498
Off-balance sheet credit facilities
Subsidiaries 113 *
Associates 10 10 10 10
(b) Compensation of key management personnel

Short-term employee benefits 9 10 9 10
Long-term employee benefits 4 6 4 6
Other 3 2 3 2
16 18 16 18
* Less than $500,000.

40. Segment information
(a) Operating segments

The Group is organised to be segment-led across key markets. Global segment heads are responsible for driving business
with decision-making balanced with a geographical perspective. For internal management purposes, the following segments
represent the key customer segments and product groups:
Group Retail (GR)

GR segment covers Consumer, Privilege, Business and Private Banking. Consumer Banking serves the individual customers, while
Business Banking serves small enterprises with a wide range of products and services, including deposits, loans, investments,
credit and debit cards and insurance products. Privilege Banking provides an extended range of financial services, including
wealth management, and restricted products such as structured notes, funds of hedge funds, and insurance plans to the wealthy
and affluent customers. Private Banking caters to the high net worth individuals and accredited investors, offering financial and
portfolio planning, including investment management, asset management and estate planning.
Group Wholesale (GW)

GW segment encompasses Commercial Banking, Corporate Banking, Financial Institutions Group (FIG), Corporate Finance and
Debt Capital Markets. Commercial Banking serves the medium and large enterprises, while Corporate Banking serves large local
corporations, government-linked companies and agencies, and FIG serves financial institutions. Commercial Banking, Corporate
Banking and FIG provide customers with a broad range of products and services that include current accounts, deposits, lending,
asset finance, ship finance, trade finance, structured finance, cash management and cross-border payments. Corporate Finance
provides services that include lead managing and underwriting equity offerings and corporate advisory services. Debt Capital
Markets specialises in solution-based structures to meet clients financing requirements 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.
Global Markets and Investment Management (GMIM)

GMIM segment provides a comprehensive range of treasury products and services, including foreign exchange, money market,
fixed income, derivatives, margin trading, futures broking, gold products, as well as an array of structured products. It is a
dominant player in Singapore dollar treasury instruments as well as a provider of banknote services in the region. It also engages
in asset management, proprietary investment activities and management of excess liquidity and capital funds.
Other
Other segment includes property-related activities, insurance businesses and income and expenses not attributable to other
operating segments.

40. Segment information (continued)
(a) Operating segments 1 (continued)

The Group
GR GW GMIM Other Elimination 2 Total
2011
Operating income 2,406 2,176 927 580 (390) 5,699
Share of profit of associates (3) 96 93
Segment assets 65,160 86,189 77,600 8,813 (6,092) 231,670
Intangible assets
Goodwill 1,333 2,109 666 80 4,188
Other 3 5 8
Investment in associates 20 1,072 1,092
Total assets 66,496 88,303 78,286 9,965 (6,092) 236,958
Segment liabilities 85,647 77,135 43,920 13,869 (6,757) 213,814
Other information
Inter-segment operating income 407 (183) (226) 392 (390)
Gross customer loans 64,796 78,741 340 66 143,943
Non-performing assets 474 1,813 151 142 2,580
Capital expenditure 14 4 6 163 187
Depreciation of assets 8 5 3 100 116
2010
Operating income 2,245 1,885 1,153 861 (344) 5,800
Share of profit of associates 3 136 139
Profit before tax 1,018 1,269 733 268 (91) 3,197
Segment assets 52,992 65,764 88,959 6,320 (5,665) 208,370
Intangible assets
Goodwill 1,334 2,112 666 80 4,192
Other 6 12 18
Investment in associates 5 1,193 1,198
Total assets 54,332 67,888 89,630 7,593 (5,665) 213,778
Segment liabilities 76,431 61,029 48,485 12,501 (6,321) 192,125
Other information
Inter-segment operating income 239 (180) (16) 301 (344)
Gross customer loans 52,716 62,171 165 70 115,122
Non-performing assets 577 1,668 192 123 2,560
Capital expenditure 9 3 4 90 106
Depreciation of assets 9 5 3 120 137
Note: No operating income from transactions with a single external customer or counterparty amounted to 10% or more of the Groups operating income
in 2011 or 2010.
1
Transfer prices between operating segments are on arms length basis in a manner similar to transactions with third parties.
2
This includes joint income and expenses allocated to business segments in respect of cross-sell activities.

40. Segment information (continued)
(b) Geographical segments

The following geographical segment information is based on the location where the transactions and assets are booked,
which approximates that based on the location of the customers and assets. The information is stated after elimination of
inter-segment transactions.
The Group
Total operating income Profit before tax Total assets
2011 2010 2011 2010 2011 2010
Singapore 3,339 3,730 1,840 2,290 144,739 141,970

Malaysia 797 706 450 395 29,308 21,620
Thailand 431 408 50 87 11,996 10,533
Indonesia 430 388 151 175 7,767 5,455
Greater China 323 227 147 105 19,133 11,879
Other 379 341 180 156 19,819 18,111
5,699 5,800 2,818 3,208 232,762 209,568
Intangible assets (10) (11) 4,196 4,210
5,699 5,800 2,808 3,197 236,958 213,778
41. Financial risk management
The Groups business activities involve the use of financial instruments, including derivatives. These activities expose the Group to
a variety of financial risks, mainly credit risk, foreign exchange risk, interest rate risk, equity risk and liquidity risk.
The Groups financial risks are centrally managed by the various specialist committees within the delegated authority by the
Board of Directors. These various specialist committees formulate, review and approve policies and limits to monitor and manage
risk exposures under their respective supervision. The major policy decisions and proposals approved by these committees are
subject to further review by the Board Risk Management Committee.
The Risk Management Sector assumes the independent oversight of risks undertaken by the Group, and takes the lead in the
formulation and approval of risk policies, controls and processes. The Market Risk Control within the Risk Management Sector
monitors Global Markets and Investment Managements compliance with trading policies and limits. This is further enhanced by
the periodic risk assessment audit carried out by the Group Audit.
The main financial risks that the Group is exposed to and how they are being managed are set out below:
(a) Credit risk

Credit risk is defined as the risk of loss arising from any failure by a borrower or a counterparty to fulfil its financial obligations as
and when they fall due.
The Group Credit Committee is delegated the authority by the Board of Directors to oversee all credit matters. It maintains oversight
on the effectiveness of the Groups credit and country risk management structure including framework, people, processes,
information, infrastructure, methodologies and systems.

41. Financial risk management (continued)
(a) Credit risk (continued)

Credit risk exposures are managed through a robust credit underwriting, structuring and monitoring process. The process
includes monthly review of all non-performing and special mention loans, ensuring credit quality and the timely recognition of
asset impairment. In addition, credit review and audit are performed regularly to proactively manage any delinquency, minimise
undesirable concentrations, maximise recoveries, and ensure that credit policies and procedures are complied with. Past dues
and credit limit excesses are tracked and analysed by business and product lines.
Country risk arises where the Group is unable to receive payments from customers as a result of political or economic events in
the country. These events include political and social unrest, nationalisation and expropriation of assets, government repudiation
of external indebtedness, and currency depreciation or devaluation.
(i) Credit exposure
The Group
Average Average
2011 2010 2011 2010
Balances and placements with central banks 27,331 23,780 25,382 29,279
Singapore Government treasury bills and securities 10,930 12,386 9,652 12,208
Other government treasury bills and securities 7,855 6,913 8,188 7,521
Trading debt securities 129 6 250 7
Placements and balances with banks 14,203 12,260 16,951 11,455
Loans to non-bank customers 126,816 105,821 141,191 112,440
Derivative financial assets 5,910 5,495 6,257 5,563
Assets pledged 4,738 4,970 2,526 6,950
Other 2,577 2,788 2,390 2,768
212,265 187,375 223,726 200,803
Contingent liabilities 15,389 13,647 15,810 14,968
Commitments 51,099 47,749 53,611 48,588
278,753 248,771 293,147 264,359
Collateral and other credit enhancements such as properties, marketable securities, fixed deposits and credit default swaps
were obtained or entered into by the Group to mitigate its credit exposure arising mainly from loans to non-bank customers.
The financial effect of the collateral and other credit enhancements amounted to 38% (2010: 34%) of the Group's total
credit exposure.


(ii) Cross-border exposure above 1% of total assets
The Group
Central
banks and % of
Banks Non-banks governments Investments Total total
$ million $ million $ million $ million $ million assets
2011
China 3,877 2,706 16 840 7,439 3.1
United States 1,345 140 66 1,589 3,140 1.3
Japan 1,328 15 1,488 307 3,138 1.3
United Kingdom 2,347 94 1 411 2,853 1.2
Hong Kong 916 1,213 564 2,693 1.1
2010
United States 468 61 2,774 2,507 5,810 2.7
China 3,266 738 610 4,614 2.2
Hong Kong 1,856 288 681 2,825 1.3
(iii) Credit quality of gross loans and debt securities

Gross loans are graded in accordance with MAS Notice 612 as follows:
The Group
2011 2010
$ million $ million
Passed 141,289 112,013

Special mention 634 1,014
Substandard 1,403 1,270
Doubtful 190 272
Loss 427 553
143,943 115,122
Gross investment debt securities of the Group as at 31 December 2011 was $11,802 million (2010: $13,262 million) and
allowance for impairment of $279 million (2010: $363 million) was made for these securities.
Collateral such as properties, marketable securities and fixed deposits were obtained by the Group to mitigate its
credit exposure.


(iv) Ageing analysis of past due but not impaired and non-performing assets
The Group
2011 2010
Past due but Non- Past due but Non-
not impaired performing not impaired performing
Current 605 596

Within 90 days 3,040 190 2,724 194
Over 90 to 180 days 141 251
Over 180 days 1,644 1,519
3,040 2,580 2,724 2,560
(v) Past due but not impaired and non-performing assets analysed by geographical segment
The Group
2011 2010
Past due Past due
but not Non- Individual but not Non- Individual
impaired performing impairment impaired performing impairment
Singapore 1,564 1,018 426 1,646 1,059 528

Malaysia 899 351 104 644 373 118
Thailand 329 468 281 256 532 334
Indonesia 78 83 35 157 80 27
Greater China 123 31 28 11 61 32
Other 47 629 175 10 455 118
3,040 2,580 1,049 2,724 2,560 1,157


(vi) Past due but not impaired and non-performing assets analysed by industry
The Group
2011 2010
Past due Past due
but not Non- Individual but not Non- Individual
impaired performing impairment impaired performing impairment
Transport, storage
and communication 108 569 176 214 361 89
Building and
construction 230 134 33 115 149 43
Manufacturing 365 491 279 382 524 346
Financial institutions 99 537 218 194 575 251
General commerce 842 278 121 520 353 205
Professionals and
private individuals 473 144 79 857 197 99
Housing loans 850 228 33 375 259 36
Other 73 199 110 67 142 88
3,040 2,580 1,049 2,724 2,560 1,157
(vii) Security coverage of non-performing assets
The Group
2011 2010
$ million $ million
Non-performing assets secured by:

Properties 729 935
Marketable securities, fixed deposits and other 269 218
Unsecured non-performing assets 1,582 1,407
2,580 2,560
(viii) Collateral possessed during the financial year
The Group
2011 2010
$ million $ million
Properties 3 12
Collateral possessed are disposed of in an orderly manner in accordance with target prices set. Proceeds from sale of
collateral are used to reduce the outstanding loans.

(b) Foreign exchange risk

Foreign exchange risk is the risk to earnings and economic value of foreign currency assets, liabilities and financial derivatives
caused by fluctuations in foreign exchange rates.
The Groups foreign exchange exposures comprise trading, non-trading and structural foreign exchange exposures. Non-
trading foreign exchange exposures are principally derived from customer businesses. Structural foreign currency exposures
are represented by the net asset values of overseas branches, share of the net asset values of its overseas subsidiaries and
associates, and long-term investment in overseas properties of the Group. The Group utilises mainly spot foreign exchange,
foreign currency forwards and swaps to hedge its foreign exchange exposures. Where possible, foreign investments are funded
in the functional currencies of the respective locations to mitigate structural foreign currency exposures.
Foreign exchange risk is managed through policies and risk limits approved by the Asset and Liability Committee (ALCO).
The limits, such as exposure by currency are independently monitored by Market Risk Management and Market Risk Control.
(i) The following table sets out the Groups assets, liabilities and financial derivatives by currency as at the balance sheet date.
The off-balance sheet gap represents the net contract or notional amount of derivatives which is used principally to reduce
the Groups exposure to foreign exchange risk.
The Group
Singapore Malaysian Indonesian
dollar US dollar ringgit Thai baht rupiah Other Total
$ million $ million $ million $ million $ million $ million $ million
2011
central banks 11,438 3,513 5,950 2,222 1,199 2,464 26,786
Securities 1 12,974 7,571 1,954 1,511 158 8,421 32,589
Placements and balances with banks 1 201 10,544 45 89 172 7,719 18,770
Loans to non-bank customers 76,900 19,558 18,435 7,280 4,436 14,582 141,191
Investment in associates 997 1 83 * 11 1,092
Intangible assets 3,182 723 291 4,196
Derivative financial assets 2,806 2,319 30 168 12 922 6,257
Other 3,104 677 446 448 231 1,171 6,077
Total assets 111,602 44,183 26,943 12,441 6,499 35,290 236,958
Deposits and balances of non-bank

customers 95,720 19,818 20,890 6,874 4,774 21,384 169,460
and bills and drafts payable 4,562 5,933 1,792 527 96 8,570 21,480
Debts issued 1,610 7,668 204 1,824 480 11,786
Derivative financial liabilities 3,135 2,689 56 164 12 1,011 7,067
Other 1,492 1,248 472 243 139 427 4,021
Total liabilities 106,519 37,356 23,414 9,632 5,021 31,872 213,814
On-balance sheet open position 5,083 6,827 3,529 2,809 1,478 3,418
Off-balance sheet open position 9,528 (9,162) (49) (821) * 505
Net open position 14,611 (2,335) 3,480 1,988 1,478 3,923
* Less than $500,000.

1
Include assets pledged.

(b) Foreign exchange risk (continued)

(i) The Group
Singapore Malaysian Indonesian
dollar US dollar ringgit Thai baht rupiah Other Total
$ million $ million $ million $ million $ million $ million $ million
2010
central banks 21,496 2,338 3,445 671 921 1,872 30,743
Securities 1 16,194 11,897 2,419 2,801 214 6,928 40,453
Placements and balances with banks 1 285 5,688 69 336 34 7,046 13,458
Loans to non-bank customers 65,329 13,559 13,933 6,559 3,169 9,891 112,440
Investment in associates 1,111 2 77 6 2 1,198
Intangible assets 3,182 725 303 4,210
Derivative financial assets 4,988 182 102 140 5 146 5,563
Other 3,627 890 303 303 216 374 5,713
Total assets 116,212 34,556 20,348 11,541 4,862 26,259 213,778

customers 86,464 17,264 15,508 6,503 3,150 13,410 142,299
and bills and drafts payable 6,997 13,420 2,034 210 134 10,355 33,150
Debts issued 2,504 3,015 207 532 5 6,263
Derivative financial liabilities 4,734 442 111 165 5 286 5,743
Other 2,497 859 241 220 127 726 4,670
Total liabilities 103,196 35,000 18,101 7,630 3,416 24,782 192,125
On-balance sheet open position 13,016 (444) 2,247 3,911 1,446 1,477
Off-balance sheet open position 1,931 (215) (208) (2,036) 11 517
Net open position 14,947 (659) 2,039 1,875 1,457 1,994
1

(b) Foreign exchange risk (continued)

(ii) Structural currency exposures of the Group as at the balance sheet date were as follows:
The Group
Structural currency exposure
Total Hedged Unhedged
$ million $ million $ million
2011
Chinese renminbi 817 817
Thai baht 2,008 2,008
US dollar 537 407 130
Other 1,032 717 315
7,586 1,124 6,462
2010
Chinese renminbi 727 727
Thai baht 2,059 2,059
US dollar 487 383 104
Other 867 575 292
7,082 958 6,124

(c) Interest rate risk

Interest rate risk is the impact to earnings and economic value of the Group due to fluctuations in interest rates.
Interest rate exposure arises from differences in the maturity and repricing dates of assets, liabilities and off-balance sheet items.
These mismatches are actively monitored and managed as part of the overall interest rate risk management process which is
conducted in accordance with the Groups policies as approved by the ALCO.
(i) The table below shows the Groups sensitivity to interest rates by time band based on the earlier of contractual repricing
date and maturity date. Actual repricing dates may differ from contractual repricing dates due to prepayment of loans or
early withdrawal of deposits.
The Group
Over 7 Over Over Over Non-
Up to 7 days to 1 1 to 3 3 to 12 1 to 3 Over 3 interest
days month months months years years bearing Total
$ million $ million $ million $ million $ million $ million $ million $ million
2011
with central banks 6,512 8,761 3,837 1,986 5,690 26,786
Securities 1 (486) 2,340 6,283 6,235 4,211 10,642 3,364 32,589
with banks 1 5,081 3,931 6,818 2,632 1 307 18,770
Loans to non-bank customers 26,325 63,512 33,134 11,079 3,986 2,015 1,140 141,191
Investment in associates 1,092 1,092
Intangible assets 4,196 4,196
Derivative financial assets 6,257 6,257
Other 931 74 8 250 354 4,460 6,077
Total assets 38,363 78,618 50,080 22,182 8,552 12,657 26,506 236,958

customers 60,631 36,644 22,131 22,858 5,090 1,406 20,700 169,460
and bills and drafts payable 2,742 6,954 4,760 1,023 6,001 21,480
Debts issued 395 1,883 3,325 172 4,525 1,204 282 11,786
Derivative financial liabilities 7,067 7,067
Other 909 1 3 28 40 3,040 4,021
Total liabilities 64,677 45,482 30,219 24,081 9,655 2,610 37,090 213,814
Equity attributable to:

Equity holders of the Bank 22,967 22,967
Non-controlling interests 177 177
Total equity 23,144 23,144
Net on-balance sheet position (26,314) 33,136 19,861 (1,899) (1,103) 10,047 (33,728)
Net off-balance sheet position 1,985 1,889 594 (3,487) 1,235 (2,216)
Net interest rate sensitivity gap (24,329) 35,025 20,455 (5,386) 132 7,831 (33,728)
1

(c) Interest rate risk (continued)

(i) The Group
Over 7 Over Over Over Non-
Up to 7 days to 1 1 to 3 3 to 12 1 to 3 Over 3 interest
days month months months years years bearing Total
2010
Securities 1 166 1,876 7,117 8,986 8,284 11,251 2,773 40,453
with banks 1 4,188 3,277 4,574 1,232 33 154 13,458
Other 206 13 104 345 546 151 4,348 5,713
Total assets 30,746 61,521 45,781 25,758 13,021 13,035 23,916 213,778

customers 54,761 26,309 19,540 21,767 1,613 1,416 16,893 142,299
and bills and drafts payable 12,388 9,424 6,384 821 4,133 33,150
Debts issued 59 210 351 1,567 1,293 2,490 293 6,263
Other 945 195 72 395 369 39 2,655 4,670

Net on-balance sheet position (37,407) 25,383 19,434 1,208 9,746 9,090 (27,455)
Net off-balance sheet position 2 2,389 4,574 (2,984) (2,194) 18 (1,802)
Net interest rate sensitivity gap (35,018) 29,957 16,450 (986) 9,764 7,288 (27,455)
1
2
Profiling of undrawn commitments includes only committed credit facilities for Singapore.
(ii) The economic value of equity (EVE) sensitivity at 100 and 200 basis points parallel interest rate shocks were negative
$285 million and $503 million (2010: negative $431 million and $873 million) respectively. This is computed on the
banking book for major currencies (Singapore dollar, US dollar and Malaysian ringgit) from major subsidiaries and
branches. EVE is the present value of assets less present value of liabilities of the Group. The reported figures are
based on the worst case of an upward and downward parallel shift in the yield curve. The repricing profile of loans and
deposits that do not have maturity dates is generally based on the earliest possible repricing dates, taking into account
the notice period to be served to the customers. Loan prepayment is generally estimated based on past statistics and
trends where possible and material. There may be some differences in the assumptions across geographical locations
due to variation in local conditions.


(d) Liquidity risk
Liquidity risk is the risk that the Group is unable to meet its financial obligations as and when they fall due, such as upon maturity
of deposits and draw-down of loans.
The Group manages liquidity risk in accordance with the liquidity framework approved by the ALCO. This framework comprises
policies, controls and limits. These controls and policies include setting of cash flow mismatch limits, monitoring of liquidity
early warning indicators, stress test analysis of cash flows in liquidity crisis scenarios and establishment of a comprehensive
contingency funding plan. The Group is also required by the respective local regulators to maintain a certain percentage of its
liability base in the form of cash and other liquid assets as a buffer against unforeseen liquidity requirements. The main objectives
are honouring all cash outflow commitments on an on-going basis, satisfying statutory liquidity and reserve requirements, and
avoiding raising funds at market premiums or through forced sale of assets.
(i) The following table shows the cashflow analysis of the Groups assets and liabilities by remaining contractual maturities on
an undiscounted basis. Actual maturity dates may differ from contractual maturity dates due to behavioural patterns such
as prepayment of loans. In particular, the Group has a significant amount of core deposits of non-bank customers which
are contractually at call (included in the Up to 7 days time band) but historically a stable source of long-term funding for
the Group.
The Group
Over 7 Over Over Over No
Up to 7 days to 1 1 to 3 3 to 12 1 to 3 Over 3 specific
days month months months years years maturity Total
2011
with central banks 10,314 5,745 3,842 1,993 526 4,382 26,802
Securities 1 (401) 1,693 4,710 6,675 6,631 13,121 3,216 35,645
Placements and balances with
banks 1 4,328 3,504 6,861 4,216 930 1,178 26 21,043
Other 911 218 46 254 352 545 3,266 5,592
Total assets 19,113 20,717 28,031 30,623 34,965 98,148 24,963 256,560
Deposits and balances of

non-bank customers 84,749 32,875 21,981 23,414 5,161 1,492 15 169,687
and bills and drafts payable 6,903 7,323 5,318 1,204 244 495 7 21,494
Debts issued 367 1,708 2,827 459 5,591 1,327 281 12,560
Other 132 146 99 105 62 411 2,890 3,845

Net on-balance sheet position (73,038) (21,335) (2,194) 5,441 23,907 94,423 (8,441)
Net off-balance sheet position (42,582) (504) (428) (388) (193) (324) (5,284)
Net maturity mismatch (115,620) (21,839) (2,622) 5,053 23,714 94,099 (13,725)
1

(d) Liquidity risk (continued)

(i) The Group
Over 7 Over Over Over No
Up to 7 days to 1 1 to 3 3 to 12 1 to 3 Over 3 specific
days month months months years years maturity Total
2010
Securities 1 565 864 5,756 9,622 10,431 13,147 3,246 43,631
Placements and balances with
banks 1 4,245 2,757 4,278 1,374 180 598 48 13,480
Other 410 114 31 271 547 151 3,667 5,191
Total assets 16,669 18,099 28,058 32,078 33,890 71,379 28,154 228,327

non-bank customers 74,767 23,035 19,655 21,936 1,625 1,452 (14) 142,456
and bills and drafts payable 15,491 9,569 6,784 833 2 458 22 33,159
Debts issued 51 94 426 1,784 1,768 2,729 293 7,145
Other 109 54 157 477 168 24 3,554 4,543

Net on-balance sheet position (73,749) (14,653) 1,036 7,048 30,327 66,716 (3,097)
Net off-balance sheet position (30,964) (1,005) (775) (453) (470) (116) (10,174)
Net maturity mismatch (104,713) (15,658) 261 6,595 29,857 66,600 (13,271)
1
The Group is subject to liquidity requirements to support calls under outstanding contingent liabilities and undrawn credit
facility commitments as disclosed in Notes 33 and 36a. These have been incorporated in the net off-balance sheet position
for year ended 31 December 2011. The total outstanding contractual amounts of these items do not represent future
cash requirements since the Group expects many of these contingent liabilities and commitments (such as direct credit
substitutes and undrawn credit facilities) to expire without being called or drawn upon, and many of the contingent liabilities
(such as letters of credit) are reimbursable by customers. The behavioural adjustments based on historical trends are
disclosed in Note 41d(ii).


(ii) The following table shows the cashflow analysis of the Groups assets and liabilities with behavioural adjustments on
significant balance sheet items for Singapore, Malaysia and Thailand on an undiscounted basis. The maturity profile for
loans and deposits that do not have maturity dates, and fixed deposits that are frequently rolled over, is estimated based
on past statistics and historical trends. Other balance sheet items such as credit cards are generally estimated based
on the behavioural patterns of the customers. There may be some differences in the assumptions across geographical
locations due to variations in local conditions.
The Group
Over 7 Over Over
Up to 7 days to 1 1 to 3 3 to 12 Over 1
days month months months year Total
2011
Securities 1 326 1,681 4,840 6,493 22,305 35,645
with banks 1 5,176 3,352 6,691 3,656 2,168 21,043
Loans to non-bank customers 4,427 10,916 13,988 21,560 96,260 147,151
Other 911 218 46 254 4,163 5,592
Total assets 21,154 21,912 29,407 33,956 141,349 247,778

non-bank customers 2 12,726 14,681 10,036 4,867 127,151 169,461
and bills and drafts payable 6,849 7,377 5,318 1,204 746 21,494
Debts issued 367 1,708 2,827 459 7,199 12,560
Other 127 124 85 84 3,425 3,845
Total liabilities 20,069 23,890 18,266 6,614 145,588 214,427

Net on-balance sheet position 1,085 (1,978) 11,141 27,342 (27,383)

Net off-balance sheet position (2,115) (2,399) (904) (1,608) (12,215)
Net maturity mismatch (1,030) (4,377) 10,237 25,734 (39,598)
1
2
Excludes interest cashflows for Singapore which are negligible within the time horizon against which the bank manages its liquidity risk.


(ii) The Group
Over 7 Over Over
Up to 7 days to 1 1 to 3 3 to 12 Over 1
days month months months year Total
2010
Securities 1 1,679 928 5,350 9,354 26,321 43,632
with banks 1 4,245 2,757 4,278 1,374 826 13,480
Loans to non-bank customers 4,291 9,721 13,098 22,625 66,128 115,863
Other 410 114 31 271 4,365 5,191
Total assets 18,429 19,962 30,305 39,212 112,017 219,925

non-bank customers 2 12,640 11,665 7,106 2,873 108,016 142,300
and bills and drafts payable 15,491 9,569 6,784 833 482 33,159
Debts issued 51 94 426 1,784 4,789 7,144
Other 105 35 148 464 3,791 4,543
Total liabilities 28,287 21,363 14,464 5,954 122,821 192,889

Net on-balance sheet position (9,858) (1,401) 15,841 33,258 (32,457)

Net off-balance sheet position 3 (472) (2,472) (1,548) (3,064) (4,139)
Net maturity mismatch (10,330) (3,873) 14,293 30,194 (36,596)
1
2
Excludes interest cashflows for Singapore which are negligible within the time horizon against which the bank manages its liquidity risk.
3
Profiling of undrawn commitments includes only committed credit facilities for Singapore.

(e) Value-at-risk
The Group adopts a daily Value-at-Risk (VaR) to estimate market risk within a 99% confidence interval using the historical
simulation method. This methodology does not make assumptions on the distribution of returns and the correlations between
risk classes. The method assumes that possible future changes in market rates may be implied by observed historical market
movements. The level of VaR is dependent on the exposures, as well as market prices and volatilities. The table below shows the
VaR profile by risk classes.
The Group
Year end High Low Average
2011
Interest rate 4.10 6.32 1.83 3.58
Foreign exchange 2.90 5.23 0.85 2.53
Equity 0.07 1.43 0.07 0.60
Commodity 0.02 0.58 * 0.06
Specific risk 1 1.35 2.07 0.18 1.07
Total VaR (general market risk with specific risk) 4.81 9.48 2.28 4.66
2010
Interest rate 2.43 9.42 1.43 3.71
Foreign exchange 1.09 7.03 0.60 1.62
Equity 1.21 2.31 0.69 1.30
Commodity * 0.16 * 0.01
Specific risk 1 0.73 2.05 0.63 1.18
Total VaR (general market risk with specific risk) 3.46 9.74 2.07 4.48
* Less than $5,000.

1
Specific risk encompasses specific equity market risk and specific credit market risk. It is computed from the residual volatility implied from the movement of
individual assets and their corresponding indices.

42. Capital management
The Groups capital management objective is to maintain an optimal level of capital. Policies are set to ensure that the capital
maintained is adequate to support business growth, taking into consideration regulatory requirements, the underlying risks of
the Groups business and other factors such as rating targets. The policies endorsed by the Board of Directors are overseen by
senior management.
The Group computes its capital adequacy ratios in accordance with MAS Notice 637 Risk-Based Capital Adequacy Requirements
for Banks Incorporated in Singapore. The Groups Tier 1 capital comprises mainly share capital, reserves and retained earnings,
and Tier 2 capital comprises qualifying subordinated notes and collective impairment allowance. Risk-weighted assets include
both on-balance sheet and off-balance sheet exposures adjusted for credit, market and operational risks.
The Group
2011 2010
$ million $ million
Tier 1 capital
Share capital 3,104 2,537
Preference shares 2,149 2,149
Disclosed reserves/other 17,511 16,439
Deductions from Tier 1 capital (4,750) (4,763)
Eligible Tier 1 capital 18,014 16,362
Tier 2 capital
Cumulative collective impairment/other 950 936
Subordinated notes 3,794 4,343
Deductions from Tier 2 capital (421) (435)
Eligible total capital 22,337 21,206
Risk-weighted assets 133,578 106,889

Core Tier 1 11.9 13.3
Tier 1 13.5 15.3
Total 16.7 19.8
43. Authorisation of financial statements
The financial statements were authorised for issue by the Board of Directors on 23 February 2012.


31 December 2011
Investor
Reference
Contents
5 Five-Year Group Financial Summary
6 Financial Highlights
68 Management Discussion and Analysis
129 Major Associates
130 Major Subsidiaries
162 UOB Share Price and Turnover
163 Statistics of Shareholdings
166 Five-Year Ordinary Share Capital Summary
170 Notice of Annual General Meeting

UOB Share Price and Turnover
Monthly turnover (000) $ per share

250,000 25
240,000 24
230,000 23
220,000 22
210,000 21
200,000 20
190,000 19
180,000 18
170,000 17
160,000 16
150,000 15
140,000 14
130,000 13
120,000 12
110,000 11
100,000 10
90,000 9
80,000 8
70,000 7
60,000 6
50,000 5
40,000 4
30,000 3
20,000 2
10,000 1
0 0
2007 2008 2009 2010 2011
Monthly turnover (000)
$ per share
2007 2008 2009 2010 2011
Share price ($)

Highest 24.20 21.70 20.08 21.08 21.00
Lowest 18.40 10.40 8.07 17.80 14.42
Average 21.30 16.05 14.08 19.44 17.71
Last done 19.90 12.92 19.70 18.20 15.27
Price/Earning ratio (times) 1, 2 15.66 12.84 11.83 11.97 10.68
Dividend cover (times) 2 1.90 2.14 2.10 2.25 2.46
Net dividend yield (%) 1 3.46 3.74 4.26 3.60 3.39
1
Average share prices are used in computing price/earning ratio and net dividend yield.
2

Statistics of Shareholdings
as at 9 March 2012
ORDINARY SHARES
Distribution of ordinary shareholdings
No. of
No. of ordinary shares
ordinary (excluding
Size of shareholdings shareholders % treasury shares) %
1 999 7,661 23.65 1,845,359 0.12

1,000 10,000 21,521 66.45 57,125,365 3.63
10,001 1,000,000 3,145 9.71 131,461,209 8.35
1,000,001 and above 60 0.19 1,382,862,012 87.90
Total: 32,387 100.00 1,573,293,945 100.00
Public float
Rule 723 of the Listing Manual of the Singapore Exchange Securities Trading Limited requires that at least 10% of the total number
of issued shares (excluding treasury shares, preference shares and convertible equity securities) of a listed company in a class that is
listed is at all times held by the public.
Based on information available to the Company as at 9 March 2012, approximately 76% of the issued ordinary shares of the Company
was held by the public and therefore, Rule 723 of the Listing Manual has been complied with.
Twenty largest ordinary shareholders (as shown in the Register of Members and Depository Register)
No. of
Name of ordinary shareholders ordinary shares %*
Citibank Nominees Spore Pte Ltd 251,114,166 15.96

DBS Nominees Pte Ltd 227,503,087 14.46
United Overseas Bank Nominees (Pte) Ltd 141,554,758 9.00
DBSN Services Pte Ltd 136,829,067 8.70
Wee Investments Private Ltd 119,995,170 7.63
Wah Hin and Company Private Limited 81,223,402 5.16
HSBC (Singapore) Nominees Pte Ltd 74,778,410 4.75
Tai Tak Estates Sendirian Berhad 67,445,739 4.29
UOB Kay Hian Pte Ltd 37,942,112 2.41
BNP Paribas Securities Services Singapore 36,295,287 2.31
C Y Wee & Co Pte Ltd 34,299,710 2.18
Raffles Nominees Pte Ltd 31,847,070 2.02
UOB Nominees (2006) Pte Ltd 18,075,642 1.15
Wee Cho Yaw 17,382,921 1.10
Tee Teh Sdn Berhad 10,579,419 0.67
Merrill Lynch (Spore) Pte Ltd 6,944,744 0.44
Estate of Lo Kwang Pheng Deceased 4,369,500 0.28
Ho Sim Guan 4,332,372 0.28
Kota Trading Company Sendirian Berhad 4,069,518 0.26
Tropical Produce Company Pte Ltd 3,928,804 0.25
Total: 1,310,510,898 83.30
* Percentage is calculated based on the total number of issued ordinary shares, excluding treasury shares, of the Bank.

as at 9 March 2012
ORDINARY SHARES
Substantial shareholders (as shown in the Register of Substantial Shareholders)
Other
Shareholdings shareholdings in
registered in which substantial
the name of shareholders are
substantial deemed to have
shareholders an interest Total interest
Substantial shareholder No. of shares No. of shares No. of shares %
Estate of Lien Ying Chow, deceased 316,516 81,334,262 1 81,650,778 5.19

Lien Ying Chow Private Limited 81,233,515 1 81,233,515 5.16
Wah Hin and Company Private Limited 81,223,402 10,113 2 81,233,515 5.16
Sandstone Capital Pte Ltd 10,113 81,223,402 3 81,233,515 5.16
Wee Cho Yaw 17,382,921 261,095,414 4 278,478,335 17.70
Wee Ee Cheong 3,047,878 156,396,452 4 159,444,330 10.13
Wee Ee Chao 150,155 124,243,029 4 124,393,184 7.91
Wee Ee Lim 1,760,658 156,348,393 4 158,109,051 10.05
Wee Investments Private Ltd 119,995,007 181,913 120,176,920 7.64
* Percentage is calculated based on the total number of issued shares excluding treasury shares, of the Bank.
Notes:
1
Estate of Lien Ying Chow, deceased and Lien Ying Chow Private Limited are each deemed to have an interest in the 81,233,515 UOB shares in which Wah Hin and
Company Private Limited has an interest.
2
Wah Hin and Company Private Limited is deemed to have an interest in the 10,113 UOB shares held by Sandstone Capital Pte Ltd.
3
Sandstone Capital Pte Ltd is deemed to have an interest in the 81,223,402 UOB shares held by Wah Hin and Company Private Limited.
4
Wee Cho Yaw, Wee Ee Cheong, Wee Ee Chao and Wee Ee Lim are each deemed to have an interest in Wee Investments Private Ltds total direct and deemed interests
of 120,176,920 UOB shares.

as at 9 March 2012
UOB CLASS E NON-CUMULATIVE NON-CONVERTIBLE PREFERENCE SHARES
Distribution of preference shareholdings
No. of No. of
preference preference
Size of shareholdings shareholders % shares %
1 999 8,456 85.47 2,698,760 20.45

1,000 10,000 1,381 13.96 3,126,040 23.68
10,001 1,000,000 54 0.55 3,502,600 26.53
1,000,001 and above 2 0.02 3,872,600 29.34
Total: 9,893 100.00 13,200,000 100.00
Twenty largest preference shareholders (as shown in the Depository Register)
No. of
preference
Name of preference shareholders shares %
Citibank Nominees Spore Pte Ltd 2,472,700 18.73

United Overseas Bank Nominees (Pte) Ltd 1,399,900 10.61
HSBC (Singapore) Nominees Pte Ltd 704,200 5.33
DBS Nominees Pte Ltd 374,000 2.83
Raffles Nominees Pte Ltd 326,200 2.47
Wee Foundation 167,700 1.27
First Capital Insurance Limited Insurance Fund A/C 160,000 1.21
Tan Ser Kian, Fong Yin Leong & Lim Yin Nee 160,000 1.21
Bank of Singapore Nominees Pte Ltd 108,700 0.82
Singapura Finance Ltd 100,000 0.76
Tan Chong & Sons Motor Company (Singapore) Private Limited 100,000 0.76
Tan Chee Jin 78,800 0.60
HL Bank Nominees (S) Pte Ltd 73,300 0.56
Della Suantio Mrs Della Suantio Lee 59,500 0.45
Institute of Technical Education 50,000 0.38
Sembawang Town Council 50,000 0.38
Singapore Hokkien Huay Kuan 50,000 0.38
Titular Roman Catholic Archbishop Of Singapore 50,000 0.38
BNP Paribas Nominees Spore Pte Ltd 46,400 0.35
Wilson Yip 45,600 0.35
Total: 6,577,000 49.83

Five-Year Ordinary Share Capital Summary
Number of ordinary shares

Held in
Year Particulars Issued treasury In circulation
2007 Balance at beginning of year 1,523,275,625

Exercise of share options 484,000
Share buyback and held in treasury (11,597,000)
Balance at end of year 1,523,759,625 (11,597,000) 1,512,162,625
2008 Exercise of share options 171,000

Share buyback and held in treasury (6,723,000)
2009 Exercise of share options 263,000

Issue of shares under share-based compensation plans 145,071
2010 Issue of shares under share-based compensation plans 659,879

Issue of shares under scrip dividend scheme 35,945,762
2011 Issue of shares under share-based compensation plans 1,514,902

Share buyback and held in treasury (570,186)
Issue of shares under scrip dividend scheme 30,354,554

Our International Network
BANKING SERVICES Canada UOB Yaumatei Branch

UOB Vancouver Branch 554 Nathan Road
Singapore Vancouver Centre Ground Floor
United Overseas Bank Limited #1680650 West Georgia Street Kowloon, Hong Kong S.A.R.
80 Raffles Place P.O. Box 11616 Phone: (852) 2532 6888
UOB Plaza Vancouver, British Columbia Fax: (852) 2388 2613
Singapore 048624 Canada V6B 4N9 Email: [email protected]
Phone: (65) 6533 9898 Phone: (1)(604) 662 7055 Chief Executive Officer: Christine Ip
Fax: (65) 6534 2334 Fax: (1)(604) 662 3356 Deputy Chief Executive Officer: Chow Yew Hon
SWIFT: UOVBSGSG SWIFT: UOVBCA8V Alternate Chief Executive Officer:
Website: www.uobgroup.com Email: [email protected] Cindy Kwong Hing Shaun
General Manager: Lim Phoon Seng George
United Overseas Bank Limited has India
68 branches in Singapore. China UOB Mumbai Branch
United Overseas Bank (China) Limited 3 North Avenue, Maker Maxity
Far Eastern Bank Limited (a subsidiary) Units 31 & 37, 3rd Floor
(a subsidiary) Unit 105, 2F, 3F C Wing Bandra Kurla Complex
80 Raffles Place 111 Dongyuan Road Bandra (East)
UOB Plaza Pudong New Area Mumbai 400 051
Singapore 048624 Shanghai Phone: (91)(22) 2659 2121
Phone: (65) 6533 9898 PRC 200120 Fax: (91)(22) 2659 1133
Fax: (65) 6534 2334 Phone: (86)(21) 6061 8888 General Manager:
SWIFT: UOVBSGSG Fax: (86)(21) 6886 0908 Lourdes Premkumar Sinnappan
Website: www.uobgroup.com SWIFT: UOVBCNSH
Email: [email protected] Indonesia
Australia Website: www.uobchina.com.cn UOB Jakarta Representative Office
UOB Sydney Branch President & Chief Executive Officer: Tan Kian Huat UOB Plaza, 38th Floor
United Overseas Bank Building Jalan M.H. Thamrin No. 10
Level 9, 32 Martin Place United Overseas Bank (China) Limited has Jakarta Pusat 10230
Sydney, NSW 2000 11 branches in China. Phone: (62)(21) 2993 7317
Phone: (61)(2) 9221 1924 Fax: (62)(21) 2993 7318
Fax: (61)(2) 9221 1541 Hong Kong S.A.R. Chief Representative: Utami Dewi Suhadi
SWIFT: UOVBAU2S UOB Main Branch
Email: [email protected] 25/F Gloucester Tower PT Bank UOB Indonesia
Executive Director/Chief Executive Officer, The Landmark (a subsidiary)
Australia & New Zealand: Peter Mackinlay 15 Queens Road UOB Plaza
Head, Operations & Corporate Services: Central, Hong Kong S.A.R. Jalan. M. H. Thamrin No. 10
Yeo Aik Leng Eric Phone: (852) 2521 1521/2910 8888 Jakarta Pusat 10230
Fax: (852) 2810 5506 Phone: (62)(21) 2350 6000
UOB Melbourne Office Telex: 74581 TYHUA HX Fax: (62)(21) 299 36632
Level 7, 350 Collins Street SWIFT: UOVBHKHH SWIFT: BBIJIDJA
Melbourne, VIC 3000 Email: [email protected] Website: www.uob.co.id
Phone: (61)(3) 9642 4808 Chief Executive Officer: Christine Ip President Director: Armand Bachtiar Arief
Fax: (61)(3) 9642 4877 Deputy Chief Executive Officer: Chow Yew Hon Deputy President Director: Wang Lian Khee
Executive Director/Chief Executive Officer, Alternate Chief Executive Officer: Deputy President Director: Iwan Satawidinata
Australia & New Zealand: Peter Mackinlay Cindy Kwong Hing Shaun
Head, Operations & Corporate Services: PT Bank UOB Indonesia has 213 branches
Yeo Aik Leng Eric UOB Central Branch in Indonesia.
State Manager: Geoff Luxton SBI Centre
54-58 Des Voeux Road Japan
Brunei Central, Hong Kong S.A.R. UOB Tokyo Branch
UOB Bandar Seri Begawan Branch Phone: (852) 2842 5666 Sanno Park Tower 13F
Units 10 & 11, Bangunan DAmin Jaya Fax: (852) 2537 7890 2-11-1 Nagatacho
Lot 54989, Kampong Kiarong Email: [email protected] Chiyoda-Ku
Bandar Seri Begawan BE1318 Chief Executive Officer: Christine Ip Tokyo 100-6113
Phone: (673) 222 5477/222 2210/222 0380 Deputy Chief Executive Officer: Chow Yew Hon Japan
Fax: (673) 224 0792 Alternate Chief Executive Officer: Phone: (81)(3) 3596 7200
SWIFT: UOVBBNBB Cindy Kwong Hing Shaun Fax: (81)(3) 3596 7201
Email: [email protected] SWIFT: UOVBJPJT
General Manager: Abdul Razak Abdul Malek UOB Mongkok Branch Email: [email protected]
794 Nathan Road General Manager: Wong Kwong Yew
UOB Kuala Belait Branch Ground Floor
Chinese Chamber of Commerce Building Kowloon, Hong Kong S.A.R.
Ground Floor Phone: (852) 2381 2292
Lot 104, Jalan Bunga Raya Fax: (852) 2397 4564
Kuala Belait KA1131 Email: [email protected]
Phone: (673) 333 1889/334 1012 Chief Executive Officer: Christine Ip
Fax: (673) 333 1391 Deputy Chief Executive Officer: Chow Yew Hon
Email: [email protected] Alternate Chief Executive Officer:
Branch Manager: Abdul Razak Abdul Malek Cindy Kwong Hing Shaun

Malaysia Taiwan Correspondents

United Overseas Bank Limited, UOB Taipei Branch In all principal cities of the world
Labuan Branch Union Enterprise Plaza, 16th Floor
Level 6A, Main Office Tower 109 Minsheng East Road
Financial Park Labuan Complex Section 3, Taipei 105
RELATED FINANCIAL SERVICES
Jalan Merdeka Phone: (886)(2) 2715 0125
GOLD/FUTURES DEALING
87000 Labuan F.T. Fax: (886)(2) 2713 7456
Malaysia Email: [email protected]
Singapore
Phone: (60)(87) 424 388 General Manager: Ho Loon Khwan
UOB Bullion and Futures Limited
Fax: (60)(87) 424 389
(a subsidiary)
Swift: UOVBMY2L Thailand
80 Raffles Place, 5th Floor
Email: [email protected] United Overseas Bank (Thai) Public
UOB Plaza 1
General Manager: Winston Lai Tak Kong Company Limited
Singapore 048624
(a subsidiary)
Phone: (65) 6494 6540 / 6494 6539
United Overseas Bank (Malaysia) Bhd 191 South Sathon Road
Fax: (65) 6534 1984 / 6535 6312
(a subsidiary) Sathon
Email: [email protected]
Menara UOB Bangkok 10120
Website: www.uobfutures.com
Jalan Raja Laut Phone: (66)(2) 343 3000
Chief Executive Officer: Ng Kwan Meng
P.O. Box 11212 Fax: (66)(2) 287 2973/287 2974
50738 Kuala Lumpur Telex: 84351 BKASIA TH
UOBF Schneider Trading Pte Ltd
Phone: (60)(3) 2692 7722 SWIFT: UOVBTHBK
(a subsidiary)
Fax: (60)(3) 2691 0281 Website: www.uob.co.th
80 Raffles Place #17-02
Telex: MA 34191 UOBMHO President & Chief Executive Officer:
UOB Plaza 1
SWIFT: UOVBMYKL Wong Kim Choong
Singapore 048624
Email: [email protected] Deputy President & Deputy Chief Executive Officer:
Phone: 6751 5702
Website: www.uob.com.my Chua Teng Hui
Fax: 6535 2676
Director & Chief Executive Officer: Chan Kok Seong
United Overseas Bank (Thai) Public Company
Chief Executive Officer: Ady Ng Lai Wah
United Overseas Bank (Malaysia) Bhd has Limited has 154 branches in Thailand
45 branches in Malaysia.
Taiwan
United Kingdom
UOB Bullion and Futures Limited,
Myanmar UOB London Branch
Taiwan Branch
UOB Yangon Representative Office 19 Great Winchester Street
Union Enterprise Plaza, 16th Floor
48 Aung Teza Street, 6th Ward London EC2N 2BH
109 Minsheng East Road
High Land Avenue Phone: (44) (20) 7448 5800
Section 3, Taipei 10544
Mayangone Township Fax: (44) (20) 7628 3433
Phone: (886)(2) 2545 6163
Yangon SWIFT: UOVBGB2L
Fax: (886)(2) 2719 9434
Phone: (95)(1) 667 818 Email: [email protected]
Fax: (95)(1) 656 224 General Manager: Ho Chai Seng
Branch Manager: Cheng Chih Jung Vincent
Chief Representative: Hla Thaung United States Of America
Thailand
UOB New York Agency
UOB Bullion and Futures (Thai)
Philippines UOB Building
Company Limited
United Overseas Bank Philippines 592 Fifth Avenue
(a subsidiary)
(A Thrift Bank) 10th Floor, 48th Street
191 South Sathon Road, 7th Floor
(a subsidiary) New York, NY 10036
Sathon
Pacific Star Building Phone: (1)(212) 382 0088
Bangkok 10120
17th Floor Fax: (1)(212) 382 1881
Phone: (66)(0) 2343 3998
Sen. Gil Puyat Avenue corner SWIFT: UOVBUS33
Fax: (66)(0) 2213 2614
Makati Avenue Email: [email protected]
1200 Makati City Agent & General Manager: Koh Kok Jin
Website: uobft.co.th
Phone: (63)(2) 6700 8686
Chief Executive Officer: Seet Choon Seng Dennis
Fax: (63)(2) 811 5869 UOB Los Angeles Agency
SWIFT: UOVBPHMM 777 South Figueroa Street
INSURANCE
Email: [email protected] Suite 518, Los Angeles
President & Chief Executive Officer: California 90017
Singapore
Emmanuel T Mangosing Phone: (1)(213) 623 8042
United Overseas Insurance Limited
Fax: (1)(213) 623 3412
(a subsidiary)
South Korea Email: [email protected]
3 Anson Road, #28-01
UOB Seoul Branch Agent & General Manager: Chen Hoong
Springleaf Tower
3(A)F Seoul Finance Centre
Singapore 079909
84, Taepyungno 1-ga Vietnam
Phone: (65) 6222 7733
Jung-Gu UOB Ho Chi Minh City Branch
Fax: (65) 6327 3869/6327 3870
Seoul 100-768 1st Floor, Central Plaza Office Building
Phone: (82)(2) 739 3916/739 3919 17 Le Duan Boulevard
Website: uoi.com.sg
Fax: (82)(2) 730 9570 District 1, Ho Chi Minh City
Managing Director: Chan Mun Wai David
SWIFT: UOVBKRSE Phone: (84)(8) 3825 1424
Email: [email protected] Fax: (84)(8) 3825 1423
General Manager: Chung Kok Kai Steven SWIFT: UOVBVNVX
Country Head, Vietnam & Myanmar:
Thng Tien Tat
General Manager: Ho Sze Ming

Hong Kong S.A.R. SZVC-UOB Venture Management Co., Ltd United States Of America
UOB Insurance (H.K.) Limited (an associate) UOB Global Capital LLC
(a subsidiary) 11/F Investment Building (a subsidiary)
16th Floor, Worldwide House No. 4009 Shennan Road UOB Building
19 Des Voeux Road Futian Central District 592 Fifth Avenue
Central, Hong Kong S.A.R. Shenzhen 518026 Suite 602
Phone: (852) 3606 9933 Phone: (86)(755) 8291 2888 New York, NY 10036
Fax: (852) 2810 0225 Fax: (86)(755) 8290 4093 Phone: (1)(212) 398 6633
Director: Chan Mun Wai David Email: [email protected] Fax: (1)(212) 398 4030
Deputy General Manager: Tao Alina Email: [email protected]
INVESTMENT MANAGEMENT Managing Director: David Goss
France
Singapore UOB Global Capital SARL MERCHANT BANKING
UOB Asset Management Ltd (a subsidiary)
(a subsidiary) 40 Rue La Perouse Hong Kong S.A.R.
80 Raffles Place, 3rd Floor 75116 Paris UOB Asia (Hong Kong) Limited
UOB Plaza 2 Phone: (33)(1) 5364 8400 (a subsidiary)
Singapore 048624 Fax: (33)(1) 5364 8409 Suite 601, 6/F AON China Building
Phone: (65) 6532 7988 Email: [email protected] 29 Queen's Road
Fax: (65) 6535 5882 Managing Director: Michael Landau Central, Hong Kong S.A.R.
Email: [email protected] Phone: (852) 2868 2633
Website: uobam.com.sg Japan Fax: (852) 2840 0438
Managing Director & Group Chief Investment UOB Asset Management (Japan) Ltd Email: [email protected]
Officer: Thio Boon Kiat (a subsidiary) Chief Executive Officer: Yip Kwok Kwan
13F Sanno Park Tower
UOB Venture Management Private Limited 2-11-1 Nagatacho, Chiyoda-ku MONEY MARKET
(a subsidiary) Tokyo 100-6113
80 Raffles Place, #30-20 Japan Australia
UOB Plaza 2 Phone: (81)(3) 3500 5981 UOB Australia Limited
Singapore 048624 Fax: (81)(3) - 3500 5985 (a subsidiary)
Phone: (65) 6539 3044 Chief Executive Officer: Masashi Ohmatsu United Overseas Bank Building
Fax: (65) 6538 2569 Level 9, 32 Martin Place
Email: [email protected] Malaysia Sydney, NSW 2000
Managing Director: Seah Kian Wee UOB-OSK Asset Management Sdn Bhd Phone: (61)(2) 9221 1924
(a subsidiary) Fax: (61)(2) 9221 1541
Brunei Menara UOB, Level 13 SWIFT: UOVBAU2S
UOB Asset Management (B) Sdn Bhd Jalan Raja Laut Email: [email protected]
(a subsidiary) 50350 Kuala Lumpur Director & Country Head, Australia & New Zealand:
1st Floor, Unit FF03-FF05 Phone: (60)(3) 2732 1181 Peter Mackinlay
The Centrepoint Hotel Fax: (60)(3) 2732 1100 Director & General Manager, Operations:
Jalan Gadong Email: [email protected] Yeo Aik Leng Eric
Bandar Seri Begawan BE3519 Chief Executive Officer: Lim Suet Ling
Phone: (673) 242 4806 STOCKBROKING
Fax: (673) 242 4805 Taiwan
General Manager: Kamal Haji Muhammad UOB Investment Advisor (Taiwan) Ltd Singapore
(a subsidiary) UOB-Kay Hian Holdings Limited
China Union Enterprise Plaza, 16th Floor (an associate)
UOB Investment Consultancy (Beijing) Limited 109 Minsheng East Road 8 Anthony Road #01-01
(an associate) Section 3, Taipei 10544 Singapore 229957
8/F Taiji Building Phone: (886)(2) 2719 7005 Phone: (65) 6535 6868
No. 211, Bei Si Huan Middle Road Fax: (886)(2) 2545 6591 Fax: (65) 6532 6919
Haidian District Email: [email protected] Website: www.uobkayhian.com
Beijing 100083 General Manager: William Wang Managing Director: Wee Ee Chao
Phone: (86)(10) 5161 6671
Fax: (86)(10) 5161 6700 Thailand
Email: [email protected] UOB Asset Management (Thai)
Contact: Seah Kian Wee Company Limited
(a subsidiary)
UOB Venture Management (Shanghai) Co., Ltd 191 South Sathon Road, 11th Floor
(a subsidiary) Sathon
Room 3307, United Plaza Bangkok 10120
1468 Nanjing West Road Phone: (66)(2) 676 7100
Shanghai 200040 Fax: (66)(2) 6767 8807
Phone: (86)(21) 6247 6228 Website: www.uobam.co.th
Fax: (86)(21) 6289 8817 Chief Executive Officer: Vana Bulbon
Managing Director: Seah Kian Wee

Notice of Annual General Meeting
(Incorporated in the Republic of Singapore)
Company Registration No.: 193500026Z
Notice is hereby given that the Seventieth Annual General Meeting of members of the Company will be held at Pan Pacific Singapore,
Pacific 2-3, Level 1, 7 Raffles Boulevard, Marina Square, Singapore 039595 on Thursday, 26 April 2012, at 3.00 pm to transact the
following business:
As Ordinary Business
Resolution 1 To receive the Financial Statements, the Directors Report and the Auditors Report for the year ended
31 December 2011.
Resolution 2 To declare a final one-tier tax-exempt dividend of 40 cents per ordinary share for the year ended 31 December 2011.
Resolution 3 To approve Directors fees of $1,670,000 for 2011 (2010: $1,380,000).
Resolution 4 To approve a fee of $2,250,000 to the Chairman of the Bank, Dr Wee Cho Yaw, for the period from January 2011
to December 2011.
Resolution 5 To re-appoint Ernst & Young LLP as Auditors of the Company and authorise the Directors to fix their remuneration.
To re-elect the following Directors:
Resolution 6 Mr Wong Meng Meng
Resolution 7 Mr Cheng Jue Hiang Willie
Resolution 8 Mr Hsieh Fu Hua
To pass the following resolution under Section 153(6) of the Companies Act, Cap. 50:
THAT pursuant to Section 153(6) of the Companies Act, Cap. 50, Mr ________________________ be and is
hereby re-appointed as a Director of the Company to hold such office until the next Annual General Meeting of
the Company.
In respect of:
Resolution 9 Dr Wee Cho Yaw
Resolution 10 Professor Cham Tao Soon
Resolution 11 Mr Thein Reggie
As Special Business
To consider and, if thought fit, pass the following ordinary resolutions:
Resolution 12 THAT authority be and is hereby given to the Directors to:
(a) (i) issue ordinary shares in the capital of the Company (shares) whether by way of rights, bonus or
otherwise; and/or
(ii) make or grant offers, agreements or options (collectively, Instruments) that might or would require
shares to be issued, including but not limited to the creation and issue of (as well as adjustments to)
warrants, debentures or other instruments convertible into shares,
at any time and upon such terms and conditions and for such purposes and to such persons as the
Directors may in their absolute discretion deem fit; and
(b) (notwithstanding the authority conferred by this Resolution may have ceased to be in force) issue shares
in pursuance of any Instrument made or granted by the Directors while this Resolution was in force,

provided that:
(1) the aggregate number of ordinary shares to be issued pursuant to this Resolution (including shares to
be issued in pursuance of Instruments made or granted pursuant to this Resolution) does not exceed
50 per cent of the total number of issued shares, excluding treasury shares, in the capital of the
Company (as calculated in accordance with paragraph (2) below), of which the aggregate number of
shares to be issued other than on a pro-rata basis to shareholders of the Company (including shares
to be issued in pursuance of Instruments made or granted pursuant to this Resolution) does not
exceed 20 per cent of the total number of issued shares, excluding treasury shares, in the capital of
the Company (as calculated in accordance with paragraph (2) below);
(2) (subject to such manner of calculation as may be prescribed by the Singapore Exchange Securities
Trading Limited (SGX-ST)) for the purpose of determining the aggregate number of shares that may be
issued under paragraph (1) above, the percentage of issued shares shall be based on the total number
of issued shares, excluding treasury shares, in the capital of the Company at the time this Resolution is
passed, after adjusting for:
(i) new ordinary shares arising from the conversion or exercise of any convertible securities or share
options or vesting of share awards which are outstanding or subsisting at the time this Resolution is
passed; and
(ii) any subsequent bonus issue, consolidation or subdivision of shares;
(3) in exercising the authority conferred by this Resolution, the Company shall comply with the provisions of
the Listing Manual of the SGX-ST for the time being in force (unless such compliance has been waived by
the SGX-ST) and the Articles of Association for the time being of the Company; and
(4) (unless revoked or varied by the Company in general meeting) the authority conferred by this Resolution shall
continue in force until the conclusion of the next Annual General Meeting of the Company or the date by
which the next Annual General Meeting of the Company is required by law to be held, whichever is earlier.
Resolution 13 THAT authority be and is hereby given to the Directors to allot and issue from time to time such number of
ordinary shares as may be required to be allotted and issued pursuant to the UOB Scrip Dividend Scheme.
Resolution 14 THAT
(a) authority be and is hereby given to the Directors to:
(i) allot and issue any of the preference shares referred to in Articles 7A, 7B, 7C, 7D, 7E and/or 7F of
the Articles of Association of the Company; and/or
(ii) make or grant offers, agreements or options that might or would require the preference shares
referred to in sub-paragraph (i) above to be issued,
at any time and upon such terms and conditions and for such purposes and to such persons as the
Directors may in their absolute discretion deem fit and (notwithstanding that the authority conferred by this
Resolution may have ceased to be in force) to issue the preference shares referred to in sub-paragraph (i)
above in connection with any offers, agreements or options made or granted by the Directors while this
Resolution was in force;
(b) the Directors be authorised to do all such things and execute all such documents as they may consider
necessary or appropriate to give effect to this Resolution as they may deem fit; and
(c) (unless revoked or varied by the Company in general meeting) the authority conferred by this Resolution shall
continue in force until the conclusion of the next Annual General Meeting of the Company or the date by
which the next Annual General Meeting of the Company is required by law to be held, whichever is earlier.

Notes to Resolutions
Resolution 2 is to approve the final dividend. The Transfer Books and Register of Members will be closed from 10 May 2012 to
11 May 2012, both dates inclusive, for the preparation of the final dividend. Registrable transfers received up to 5.00 pm on 9 May 2012
will be entitled to the final dividend. If approved, the final dividend will be paid on 22 May 2012.
Resolution 4 is to approve a fee of $2,250,000 for the period from January 2011 to December 2011 to the Chairman of the Bank,
Dr Wee Cho Yaw, for providing advice and guidance to Management drawn from his vast experience, knowledge and expertise
acquired over more than 50 years with the Bank.
Resolution 6 is to re-elect Mr Wong Meng Meng who will, if re-elected, continue as the Chairman of the Nominating Committee.
Resolution 7 is to is re-elect Mr Cheng Jue Hiang Willie who will, if re-elected, be a member of the Audit Committee and
Nominating Committee.
Resolution 8 is to re-elect Mr Hsieh Fu Hua who will, if re-elected, be a member of the Executive Committee, Nominating Committee,
Remuneration Committee and Board Risk Management Committee.
Resolution 9 is to re-appoint Dr Wee Cho Yaw who will, if re-appointed, remain as the Chairman of the Executive Committee,
Remuneration Committee and Board Risk Management Committee and a member of the Nominating Committee.
Resolution 10 is to re-appoint Professor Cham Tao Soon who will, if re-appointed, cease to be the Chairman of the Audit Committee
but remain as a member of the Audit Committee and Board Risk Management Committee. He will cease to be a member of the
Executive Committee, Nominating Committee and Remuneration Committee.
Resolution 11 is to re-elect Mr Thein Reggie who will, if re-appointed, be the Chairman of the Audit Committee and a member of the
Remuneration Committee.
Resolution 12 is to empower the Directors to issue ordinary shares in the capital of the Company and to make or grant instruments
(such as warrants or debentures or options) convertible into ordinary shares, and to issue ordinary shares in pursuance of such
instruments, up to an amount not exceeding in total 50 per cent of the total number of issued shares, excluding treasury shares, in the
capital of the Company, but with a sub-limit of 20 per cent for issue of shares other than on a pro-rata basis to shareholders (General
Mandate). For the purpose of determining the aggregate number of ordinary shares that may be issued pursuant to the General
Mandate, the percentage of issued shares in the capital of the Company shall be based on the total number of issued shares, excluding
treasury shares, in the capital of the Company at the time that Resolution 12 is passed, after adjusting for (a) new ordinary shares arising
from the conversion or exercise of any convertible securities or share options or vesting of share awards which are outstanding or
subsisting at the time that Resolution 12 is passed, and (b) any subsequent bonus issue, consolidation or subdivision of ordinary shares.
Resolution 13 is to authorise the directors to issue ordinary shares pursuant to the UOB Scrip Dividend Scheme (Scheme) should
the Company decide to apply the Scheme to any dividend declared by the Company from the date of this AGM until the next AGM.
Resolution 14 is to enable the Directors to issue any of the preference shares referred to in Articles 7A, 7B, 7C, 7D, 7E and/or 7F of the
Articles of Association of the Company and/or make or grant offers, agreements or options that might or would require such preference
shares to be issued at any time. The Directors will only issue such preference shares under this Resolution if they consider it appropriate
and in the interest of the Company to do so.
BY ORDER OF THE BOARD
Chan Vivien
Secretary
Singapore, 5 April 2012
Notes:
(1) A member entitled to attend and vote at the Meeting is entitled to appoint not more than two proxies to attend and vote in his stead. A proxy need not be a member of
the Company.
(2) To be effective, the instrument appointing a proxy must be deposited at 80 Raffles Place #04-20 UOB Plaza 2, Singapore 048624 (Attention: The Company Secretary) not
less than 48 hours before the time set for holding the Meeting.

This page has been intentionally left blank
This page has been intentionally left blank
Proxy Form IMPORTANT
1. The Annual Report 2011 is sent to investors who have used their CPF monies to
buy shares of United Overseas Bank Limited, FOR INFORMATION ONLY.
UNITED OVERSEAS BANK LIMITED
2. This Proxy Form is not valid for use by CPF investors and shall be ineffective for all
(Incorporated in the Republic of Singapore) intents and purposes if used or purported to be used by them.
Company Registration No. 193500026Z 3. CPF investors who wish to vote should contact their CPF Approved Nominees.
I/We _____________________________________________________________________ (Name), NRIC/Passport No. _____________________
of _____________________________________________________________________________________________________________ (Address)
being a member/members of United Overseas Bank Limited (the Company), hereby appoint
Name Proportion of Shareholdings

NRIC/Passport No. No. of Shares %
Address
and/or *
Name Proportion of Shareholdings

NRIC/Passport No. No. of Shares %
Address
* Please delete as appropriate.
or failing him/her, the Chairman of the Meeting as my/our proxy, to attend and vote for me/us on my/our behalf at the Seventieth Annual
General Meeting of members of the Company, to be held at Pan Pacific Singapore, Pacific 2-3 Level 1, 7 Raffles Boulevard, Marina Square,
Singapore 039595 on Thursday, 26 April 2012 at 3.00 pm and at any adjournment thereof.
(Please indicate with an X in the space provided how you wish your proxy to vote. In the absence of specific directions, the proxy will vote
as the proxy deems fit.)
No. Ordinary Resolutions For Against

Resolution 1 Financial Statements, Directors Report and Auditors Report
Resolution 2 Final Dividend
Resolution 3 Directors Fees
Resolution 4 Chairmans Fee
Resolution 5 Auditors and their remuneration
Resolution 6 Re-election (Mr Wong Meng Meng)
Resolution 7 Re-election (Mr Cheng Jue Hiang Willie)
Resolution 8 Re-election (Mr Hsieh Fu Hua)
Resolution 9 Re-appointment (Dr Wee Cho Yaw)
Resolution 10 Re-appointment (Professor Cham Tao Soon)
Resolution 11 Re-appointment (Mr Thein Reggie)
Resolution 12 Authority to issue ordinary shares
Resolution 13 Authority to issue shares pursuant to the UOB Scrip Dividend Scheme
Resolution 14 Authority to issue preference shares
Dated this _______ day of ______________________ 2012.

Shares in: No. of Shares
(i) Depository Register
(ii) Register of Members
Total
Signature(s) or Common Seal of Shareholder(s)
Notes:
1. Please insert the number of shares held by you and registered in your name in the Where an instrument appointing a proxy is signed on behalf of the appointor by
Register of Members and in the Depository Register of The Central Depository (Pte) an attorney, the letter or power of attorney or a duly certified copy thereof (failing
Limited. If no number is inserted, the instrument of proxy will be deemed to relate to previous registration with the Company) must be lodged with the instrument of
all the shares held by you. proxy, failing which the instrument may be treated as invalid.
2. A member of the Company entitled to attend and vote at a Meeting of the Company 7. A corporation which is a member may authorise by a resolution of its directors or
is entitled to appoint not more than two proxies to attend and vote instead of him. other governing body, such person as it thinks fit to act as its representative at
A proxy need not be a member of the Company. the Meeting, in accordance with its Articles of Association and Section 179 of the
3. Where a member appoints two proxies, the appointment shall be invalid unless Companies Act, Chapter 50 of Singapore.
he specifies the proportion of his shareholding (expressed as a percentage of the 8. The Company shall be entitled to reject the instrument of proxy if it is incomplete,
whole) to be represented by each proxy. improperly completed or illegible or where the true intentions of the appointor are
4. Completion and return of this instrument appointing a proxy shall not preclude a not ascertainable from the instructions of the appointor specified in the instrument
member from attending and voting at the Meeting. Any appointment of a proxy or of proxy. In addition, in the case of shares entered in the Depository Register, the
proxies shall be deemed to be revoked if a member attends the Meeting in person, Company may reject any instrument of proxy if the member, being the appointor,
and in such event, the Company reserves the right to refuse to admit any person or is not shown to have shares entered against his name in the Depository Register
persons appointed under this instrument of proxy, to the Meeting. as at 48 hours before the time appointed for holding the Meeting, as certified by
5. The instrument appointing a proxy or proxies must be deposited at 80 Raffles Place The Central Depository (Pte) Limited to the Company.
#04-20 UOB Plaza 2, Singapore 048624 (Attention: The Company Secretary) not 9. Agent Banks acting on the request of CPF Investors who wish to attend the
less than 48 hours before the time appointed for the Meeting. Meeting as observers are required to submit in writing, a list with details of the
6. The instrument appointing a proxy or proxies must be signed under the hand of investors name, NRIC/Passport numbers, addresses and numbers of shares
the appointor or of his attorney duly authorised in writing. Where the instrument held. The list, signed by an authorised signatory of the agent bank, should reach
appointing a proxy or proxies is executed by a corporation, it must be executed the Company Secretarys office not later than 48 hours before the time appointed
under its common seal or under the hand of an officer or attorney duly authorised. for holding the Meeting.
1st fold
2nd fold
Postage will be
paid by
addressee.
For posting in
Singapore only.
BUSINESS REPLY SERVICE

PERMIT NO. 07399
The Company Secretary

80 Raffles Place #04-20 UOB Plaza 2
Singapore 048624
Fold and glue overleaf. Do not staple.

Corporate Information
Board of Directors Secretary

Wee Cho Yaw (Chairman) Chan Vivien
Wee Ee Cheong (Deputy Chairman & Chief Executive Officer)
Ngiam Tong Dow Share Registrar
Cham Tao Soon Boardroom Corporate & Advisory Services Pte Ltd
Wong Meng Meng 50 Raffles Place
Yeo Liat Kok Philip Singapore Land Tower #32-01
Thein Reggie Singapore 048623
Franklin Leo Lavin Phone: (65) 6536 5355
Cheng Jue Hiang Willie Fax: (65) 6536 1360
Tan Lip-Bu
Hsieh Fu Hua (Appointed on 16 January 2012) Auditors
Ernst & Young LLP
Executive Committee One Raffles Quay
Wee Cho Yaw (Chairman) North Tower Level 18
Wee Ee Cheong Singapore 048583
Ngiam Tong Dow Partner-in-charge: Wilson Woo (Appointed on 29 April 2009)
Cham Tao Soon
Yeo Liat Kok Philip Registered Office
80 Raffles Place
Audit Committee UOB Plaza
Cham Tao Soon (Chairman) Singapore 048624
Yeo Liat Kok Philip Company Registration Number: 193500026Z
Thein Reggie Phone: (65) 6533 9898
Fax: (65) 6534 2334
Nominating Committee SWIFT: UOVBSGSG
Wong Meng Meng (Chairman) Website: uobgroup.com
Wee Cho Yaw
Ngiam Tong Dow Investor Relations
Cham Tao Soon 80 Raffles Place
Franklin Leo Lavin UOB Plaza
Wee Ee Cheong (Alternate to Wee Cho Yaw) Singapore 048624
Fax: (65) 6538 0270
Remuneration Committee Email: [email protected]
Cham Tao Soon
Yeo Liat Kok Philip
Board Risk Management Committee

Wee Ee Cheong
Ngiam Tong Dow
Cham Tao Soon
Tan Lip-Bu
Company Registration No.: 193500026Z
Head Office
80 Raffles Place, UOB Plaza, Singapore 048624
Phone: (65) 6533 9898 Fax: (65) 6534 2334
www.uobgroup.com

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UNITED OVERSEAS BANK LIMITED

Annual Report 2011

2 About United Overseas Bank Limited

This painting by Georgette Chen is one of the most acclaimed

As UOB is acknowledged as one of the pioneer banks in Singapore,

Chen has forged a reputation for her portraits, landscape and

UNITED OVERSEAS BANK LIMITED 1

77 years of strength and growth

For more information, please visit www.UOBGroup.com.

2 UNITED OVERSEAS BANK LIMITED

Our extensive network of more than

WESTERN EUROPE ASIA PACIFIC NORTH AMERICA

UNITED OVERSEAS BANK LIMITED 3

Alpha Southeast Asia Community Chest Awards

Best of the Best Awards

Investment Performance Awards Real Estate Deal of the Year

American Society for Training The Asian Banker

4 UNITED OVERSEAS BANK LIMITED

2007 2008 2009 2010 1 2011

Selected income statement items ($ million)

Selected balance sheet items ($ million)

Financial indicators (%)

UNITED OVERSEAS BANK LIMITED 5

2007 2008 2009 2010 1 2011

6 UNITED OVERSEAS BANK LIMITED

($ billion) 1.07% 1.06% 1.06%

2007 2008 2009 2010 1 2011

UNITED OVERSEAS BANK LIMITED 7

In anticipation of a more challenging business environment,

At the same time, we will continue to build upon the growth

UNITED OVERSEAS BANK LIMITED 9

10 UNITED OVERSEAS BANK LIMITED

Today, the banking industry is beingredefined. With capital

UNITED OVERSEAS BANK LIMITED 11

12 UNITED OVERSEAS BANK LIMITED

UNITED OVERSEAS BANK LIMITED 13

Wee Cho Yaw Wee Ee Cheong

14 UNITED OVERSEAS BANK LIMITED

Ngiam Tong Dow Cham Tao Soon

UNITED OVERSEAS BANK LIMITED 15

Wong Meng Meng Yeo Liat Kok Philip

Mr Yeo holds a Bachelor of Applied Science (Industrial

16 UNITED OVERSEAS BANK LIMITED

Thein Reggie Franklin Leo Lavin

Mr Lavin has a Bachelor of Science from the School of Foreign

UNITED OVERSEAS BANK LIMITED 17

Cheng Jue Hiang Willie Tan Lip-Bu

18 UNITED OVERSEAS BANK LIMITED

Mr Hsieh is currently an adviser to PrimePartners Group, which

He had previously served as Chief Executive Officer and a director

Mr Hsieh holds a Bachelor of Business Administration (Hons)

UNITED OVERSEAS BANK LIMITED 19

MANAGEMENT EXECUTIVE COMMITTEE Chew Mei Lee

20 UNITED OVERSEAS BANK LIMITED

Ngeo Swee Guan Steven Tjuradi Karunia Wirawan

UNITED OVERSEAS BANK LIMITED 21

A selection of paintings in the Groups art collection captures

This riverside scene is an interpretation of the mountain and lakes

Tan, a versatile and accomplished brush painter, calligrapher and