UOB - Citi

Loan Demand - Mgmt noted that credit demand is driven more by working capital

requirements (rather than capex needs), while also seeing more corporates going to
the capital markets for funds. At group level, mgmt expects high single digit loan
growth for 2010, but added that profitability is more important than volume growth.
Increased demand for longer-tenor fixed rate loans by corporates seeking to lock-in
low interest rates, but UOB not keen to compete in this segment.

 S$5bn MTN Program - Mgmt also noted an increase in demand for US$-loans by
corporates. The recent establishment of the S$5bn euro MTN program will provide
bank with additional capacity and flexibility to fund US$-loans when needed.

 Growth Drivers - 1) Growing regional contribution. Regional markets offer better
margins (relative to Singapore); Mgmt looks to lift contribution from overseas units
to 40% (1H10: 33%). 2) Growing fee income. Increase cross-selling efforts, and
focus on growing customer’s wallet size. Efforts supported by having an integrated
platform and product suite across the region.

 Singapore outlook - Keen competition likely to put pressure on loan yields,
particularly in the consumer and large corporate space. SME banking space also
seeing more competition, though mgmt added that the recent crisis has further
demonstrated importance of long-term relationship, noting that clients appear to be
more willing to pay a premium in return for reliable (“through the cycle”) banking
relationship.

 Others. [1] Asset quality remains good, no new NPL formation from Asian
corporates. [2] In China, UOB hopes to bring down LDR (c.140%) by garnering
more retail deposits. LDR lower than or near 100% in other regional mkts.