United Overseas Bank Limited (U11) Earnings Call Transcript & Summary

Good morning, and welcome to UOB's First Quarter 2023 Results Briefing. I'm from the Wendy Wan from the Group Strategic Communications team, and I will be your MC for today. This morning, we have Mr. Wee Ee Cheong, UOB Deputy Chairman and CEO; and Mr. Lee Wai Fai, our CFO, to present the results. [Operator Instructions]. Without further ado, I will now pass the time to our CEO, Mr. Wee, please.

Good morning. Thank you for joining us today. We had a strong start to the year. Our core net profit for the quarter grew to a record SGD 1.6 billion, up 74% year-on-year. Our diversified engines across the region in retail and wholesale businesses have done well. Core ROE rose to 14.9%. Net interest income was up, boosted by higher margins. Other noninterest income also surged with record high trading and investment income offsetting softer fee income. Core cost-to-income ratio improved to 40.9% as we stayed disciplined. Asset quality was resilient with credit costs within expectations. Recently, there have been pockets of banking instabilities in the U.S. and Europe. This created some volatility in global financial markets and added to concerns over the global growth outlook. The liquidity and stability of banks came under the spotlight. UOB is a safe and trusted bank with strong AA ratings. As a prudent long-term player with strong balance sheet is important to us so that we can continue to support our customers through market cycles. On the back of robust earnings, we took the opportunity to further strengthen our balance sheet. Our CET1 improved to 14% and our liquidity profile is well above regulatory minimum. Now let me share some highlights on our core business segments. Group Retail performed well, supported by a balanced business model. A bright spot here is wealth management. Wealth management fees recovered strongly hitting the highest levels in 4 quarters and are expected to increase as market sentiment improved. AUM grew 14% year-on-year or SGD 6 billion this quarter, almost all from net new money. Credit card fees almost double, 93% year-on-year due to contributions from the Citi portfolio and significant pickup in consumer spending. As we aim to show up stable funding, our retail deposit base grew 15% year-on-year. In uncertain times, customers safe harbor or you can call it flight to quality. We have received increased customer inquiries and inflows across both our wholesale and retail businesses. Now on the progress of our Citi deal, after Malaysia and Thailand, we completed the acquisition in Vietnam in March. We target to close in Indonesia later this year. We are on track to achieve our projected revenue uplift of around SGD 1 billion from 4 markets for the full year. Our customer base continued to expand from last quarter. As we scale up our regional franchise, we continue to invest in capabilities and to forge partnerships. A case in point in our recent tied up with Lazada, which spans retail and wholesale segment. We will work with our e-commerce partners to offer banking solutions for our combined customer base in 5 key Southeast Asian markets. Our wholesale business remains strong. Our loan portfolio saw steady new loans drawdown, which were offset by repayments. Meanwhile, our regional subsidiaries loan books are growing well. China reopening could offset some of the global headwinds in the second half of this year. Our margin remains stable with asset repricing, mitigating higher funding costs. Our global markets business grew strongly with customer flow income rising 25% year-on-year in first quarter '23. Over the past 12 months, customer flows account more than 60% of our trading and investment income. We continue to boost our capabilities to capture trade and investment flow. We are ramping up our cash management business. Revenue from our new cash management business mandate to date almost doubled compared with the same period last year. We actually grew 97%. Average wholesale CASA balance have surpassed pre-COVID levels, up 62% compared to 2019. Similarly, Trade income was up 19% from pre-COVID levels. Our aim is to become the #1 cross-border trade bank for ASEAN. As a result of our sustained efforts, transaction banking income has now grown to account for half of total wholesale banking income. We continue to see upside in our connectivity business. Cross-border income grew 19% year-on-year, and the number of suppliers distributors in our financial supply chain management rose 30% year-on-year. Geopolitical tensions and risk diversifications are driving supply chain shift. As production hub for the East and West across industries, ASEAN is benefiting. And UOB is gaining new businesses, working with manufacturers coming to this part of the world. Our FDI Advisory team has facilitated higher investment flow into this region, up 6.4% for first quarter from businesses in sectors such as logistics, electric vehicles, infrastructure, renewable energy, biotech and advanced manufacturing. Meanwhile, our sustainability will continue to work closely with clients on their transition. We signed an MOU with JTC last week, to scale the adoption of green solutions among Singapore business. Looking ahead, the operating environment remains uncertain. However, we still expect to see growth in Asia. There are opportunities in this region, where we have extensive integrated network. China's reopening and recovery will benefit our region. We expect trade and investment flows to improve in the second half of this year. For this year guidance remains largely unchanged, we are anticipating low to mid-single-digit loan growth with a focus on high-quality customers. Margin to hold up at current levels, double-digit fee growth from a low base. Costs will remain well managed. Credit costs at 20 to 25 basis points. With our strong balance sheet, we are committed to writing through market cycles with our customers and supporting them in ceasing opportunities in our part of the world. And we are confident that our diversified franchise will help us deliver balanced and stable growth. And I'd like to thank my colleagues for their teamwork and dedication. Now let me now invite Wai Fai to elaborate on our financials. Thank you.

Thank you Ee Cheong, and good morning, once again to everyone. Thank you for spending your morning with us. Our core net profit registered another new high of SGD 1.6 billion, as Ee Cheong said, this quarter including the one-off expenses relating to the Citi integration. Net profit would be SGD 1.5 billion. Net interest income eased this quarter due to a shorter day count as well as lower net interest margin. NIM moderated to 2.14%, partly from the liquidity surplus, which we have built and partly due to the increasing cost of funding. Fee income registered a double-digit growth to 14% led by the recovery of the wealth fees on the back of improved investor sentiment. Loan fees rebounded from last quarter's low. Cut fees held up despite traditionally softer quarter, boosted by the acquired Citi consumer portfolio. Treasury and investment income surged to an all-time high, boosted by stronger customer-related treasury income as well as good performances from our trading and liquidity management activities, which benefited from the market volatility. Cost-to-income ratio, excluding the one-off, improved to 40.9% from strong income growth and disciplined spending. The record quarter profit drove ROE to 14.9%. Asset quality stayed resilient with NPL ratio unchanged at 1.6%. We have increased our preemptive general allowances resulting in total credit cost of 25 basis points. Liquidity funding capital position strengthened further. Our CET1 increased to 14%, a 70 basis point increase over the quarter. On the business front, year-on-year, retail operating profit doubled on an enlarged revenue base from the inclusion of the Citi consumer portfolio. Deposit income surged on wider net interest margin, while credit card activities picked up with the borders reopening. Wholesale saw double-digit growth led by margin expansion and strong customer-related treasury income. Global Market benefited from market volatility that was impacted by the steeper cost of funding. Our retail customer base has surpassed the 7 million mark of this around 77% are digitally acquired. Our Malaysian and Thai customer base even after the integration has further expanded during the quarter. The completion of the Citi acquisition in Vietnam is not big for us. It added another around 140,000 customers into the base. Organically, we have also acquired 225,000 customers through the quarter with almost 60% coming through our digital channels. Following Citi acquisition, we have been targeting further growth in the multi-market partnership, one of which, Ee Cheong Wee just highlighted earlier. Leveraging on our enlarged regional customer franchise, we now have 40 strategic and core brand partnerships across multiple markets. I think this is in addition to the more than 1,000 in-country partnerships that we have. Net credit card fees doubled year-on-year in the first quarter, with Citi contributing around 1/4 of those increases. And also a significant pickup in the consumer spending for the rest of the portfolio. Our asset under management rose 14% year-on-year to SGD 160 billion, mostly from net new money inflows. And partly, as Ee Cheong said, we benefited from the flight to quality. We see opportunities in the wealth business in the near term as we observed increased customer inquiries and flow recently. Our omnichannel strategy continued to show good traction. These customers are highly engaged and actually contribute up to 3x the higher average revenue as compared to the traditional channel. Our wholesale business remains strong despite the global economic headwinds and softer near-term growth outlook. We continue with our strategy in providing business connectivity across the region. Ee Cheong highlighted some of the numbers in there and this number of supply chain increasing by 30%. Our global FIG rose 23%, while income outside our real estate, hospitality and financial institution sector rose 41%. I mean, we are moving to sectors that are less under stress from the near-term outlook. Across the region, our cash management platform is seeing significant growth in transaction volumes and cashless payment. For the quarter, we continue to see growth momentum in Singapore, the ASEAN-4 and the developed markets. Singapore recorded exceptionally strong trading and investment income, though this was partially offset by the lower NIM from the deployment of the excess funds into high-quality liquid assets. ASEAN-4 strong performance was boosted by the newly acquired Citi portfolio in Malaysia, Thailand and Vietnam. Other developed markets recovered from last quarter because last quarter, we had some mark-to-market volatilities and the market stabilized this quarter. On the detailed financials, I think I touched on this, I will skip this and let you read it. On the other indicators, first, on net margin. Net interest income rose -- sorry, net income is 6% to SGD 2.4 billion due to a shorter quarter as well as lower net interest margin. Following consecutive quarters of sharp increases in moderated 8 basis points to 2.14% this quarter. Gross margin was impacted by the catch-up in cost of funds as fixed deposits were progressively repriced at higher rates. Interbank and Securities margin increased 9 basis points quarter-on-quarter as the excess liquidity earned from the expanded deposit base were deployed into this last yielding, but still profitable, high-quality liquid assets as compared to loans. Fees income rose double digit at 14% Q-on-Q. Wealth management fees picked up after 3 consecutive soft quarters, signaling a return of investor confidence. Loan-related fees rebounded from last quarter, while card fees continued its growth momentum following the inclusion of the Citi portfolio. Customer-related treasury income started off well -- very well this year, setting a new high of SGD 202 million, driven by hedging demands. Trading and liquidity management activities also saw good performance this quarter as we managed to capture the trading opportunities amidst the market volatility. On the back of strong income growth, and well-controlled spending, core cost-to-income ratio improved to 14.9%, including the one-off, this would have been 43.3%. We continue to focus on investments to build capabilities for strategic growth of maintaining our cost discipline. I think on the asset quality, our overall asset quality of our loan portfolio remained resilient. NPA formation was stable and within our expectation and the NPA ratio was unchanged at 1.6%. On credit cost, specific allowance ease this quarter with net credit costs improving from 31 to 21 basis points. In view of the near-term macro uncertainty, we have added preemptive general allowances for this quarter to strengthen our total provision coverage, bringing total credit cost to 25 basis points for the quarter. As of March this year, the group total allowances stood at SGD 4.9 billion, of which SGD 3.3 billion was general allowances. I think our NPL coverage at 96% or 212% after collateral, and more important is the general provision coverage over performing loans improving to 1%. I think these are all very adequate and very defensive balance sheet that we have built. We are confident that our prudent provision coverage, we're cushioned against any potential downside risk from our credit portfolio. Loans growth momentum, unfortunately, has moderated, declining 1% for the quarter. Year-on-year, loans grew 1% on a constant currency basis, contributed by our ASEAN-4. If rising cost of funding, we have reduced our reliance on wholesale market and focus on growing our customer deposit franchise. Customer deposits grew steadily at 2% for the quarter and 3% for the year. This quarter, we also managed to reverse the CASA declining trend with CASA deposits mix improving to 47.9%. I think you remember that we're having this pressure dropping from 50% over. I think we are quite happy that hopefully, this will be the stabilized at rate. Our liquidity position strengthened further this quarter with LCR at 154%, and NSFR at 121%. I think these are all well above regulatory requirements. Our CET1 capital position is solid at 14%. This is contributed by the strong quarterly earnings and recovery by the mark-to-market valuation coupled with very tight and efficient RWA management. I think with that, I conclude my presentation. I'll pass it back to Wendy.

Thank you, Mr. Lee. We will now move on to the Q&A. [Operator Instructions] First question please.

Congrats on the good results. I have 3 questions, the first on loan growth guidance. It's downgraded from mid-single digit in the fourth quarter. So what are some of the major imminent risks you see to loan growth? The second question on the latest ABS announcement. What is the projected impact do you see on housing loan demand? And the third question on net interest income, how much do you think it can continue to increase given that rate hikes are keepering and we've cut on the horizon?

Okay. You asked a few questions. Let me answer one by one. Okay. The first one is on the loan growth, right? We are targeting, I think, for this year, I think, low to mid-single digit. In fact, for this first quarter, I can share with you there is a loan growth of about SGD 30.9 billion, but you have SGD 29.8 billion repayments, SGD 4.2 billion half share repayments. So it shows customer because of the high interest rate customer is happy to pay down the loans. So we are generating, but the repayments start to come in, it is something that we cannot control, right? So it also shows that our customer portfolio is good. They have the liquidity to repay. Okay. So moving forward, I think for this year, we are still targeting low to mid loan growth. Now the second one on the -- just announced, right? I just like all of you, I see the headline today. But I think long term is good for Singapore. And I think Singapore, Singapore range, you feel very happy that the government is protecting us because property is something very strategic long term. And you want to make it more sustainable in the housing market. And if you are the first time owner, you actually -- there's no change, okay? And the impact will be more to foreigners who come here to buy. And that is only constitute maybe 10% of the market as newspaper say. So I think the overall market, I believe it should be quite sustainable, okay? Now as far as UOB is concerned, I think close, if I can remember, close to 80% of our loan books are owner occupied. Our loan LTV is about 55%, 60%, right? And the repayment is all very good. We always do a stress test for the consumer. Every time today, if they were to borrow, we don't just based on today's interest rate, we based on the projected interest rate of 4%, 5%. How would that impact on their repayment capability. So I believe the portfolio will continue to stay receiving. Now what is your last question?

How much net interest income can increase given that rate hikes are keepering?

Well, anyway, Wai Fai, I think there is more on top of this, but we believe the house view is, we see another 25 basis point interest rate hike. And then you will pause. And hopefully, by next year, I would say the rate may not come down. It will continue to hold on for the next 2 years because inflation is still the main issue.

So I think there are a few questions that Ee Cheong answered. And for the ABS, the percentage quota was market, the UOB percentage for foreigners is actually going lower than that, okay? It's actually a fraction of that. So the impact of us is less because it, as Ee Cheong said, moves us unoccupied that we are focusing on. Anyway, the pipeline has been slowing down is good because of the government is also worried. So I think over longer term, like Ee Cheong said, we believe that it's good for the economy. We don't see housing going to a hard lending that a lot of people are speculating. The last question on NIM. You put things into perspective, we have been having significant growth over the last 3 quarters, okay? If this continues at that same pace, I think there are a lot of worries about the effect on credit quality as well. So we don't think that it will come down, but I think the moderation of the rate hike, a lot of people are calling for one more in this current Fed, there is, unfortunately, now some latest thought whether the Fed will actually pull the trigger because of the worry of the domestic banking after what happened to First Republic and SGP. But we know that, that will actually come down. So more important for us is we think NIM will moderate to around this level. We are confident of keeping it between 2.1% to 2.2%. If you put things in perspective, when you go back last year, my average is 1.86%. Even I stay at 2.1%, I probably have a 30-odd basis point to actually buffer my balance sheet. Number 2 is that we have actually diversified our income besides just margins itself. So we have been focusing on fees. And the good news is we saw that momentum coming back. For the wholesale side, we think there will be some weakness in the first half and probably picking up only in the second half, hopefully led by the China reopening, but we expect some loans momentum not to be as strong in the first half, but we are confident that the fees will offset that. And that's probably something that we will really make sure -- and the integration of Citi, okay? That will give me the earning base as well to cushion myself. Citi is coming in very, very well. We will get the SGD 1 billion that we promised at the revenue line. In fact, some of the initial indication is we are surpassing some of those. For example, like a number of customers, okay? There was always worried about attrition drops and all. So like I mentioned, now we are already after the integration. Number of customers continue to grow on both sides, okay? So there is growth on both sides of the customer. That signals the confidence customer has with us and with our portfolio. And if we get our multi-countries partnership in place, that would really strengthen our position as a key ASEAN player in the consumer space. So those are a few that we are a little bit confident that we will be able to hold up my income line, okay? But margin might moderate hopefully offset. And like I said, we gave up some margin because of liquidity. We actually went in and you think about it, my loans growth was negative 1%. My deposit growth was 2% up. So there's definitely some excess, and we wanted to do it to protect our balance sheet.

I think this is a key point, right, because we are a long-term player, right? And the profit is good. And you just don't look at margin, right? It's the liquidity that we are working. You look at the world outside, I mean we cannot sit here and believe that everything is rosy, right? So we have to anticipate all this problem. So liquidity is the key. So there is one thing. We're happy to make sure that the balance sheet is strong. We would rather sacrifice a bit of NIM. It's okay. And if you look at the Citibank portfolio where we acquire, we anticipate the attrition rate, right, to be about 10%. But actually, today, after we merged, it's actually up 3%. Like you look at the Thailand portfolio, you look at Malaysian property, it shows that people are willing to accept us, more than willing, right? The growth is there. So it's a good thing. So as what my CFO said, we can anticipate a lot of growth out of Citi portfolio and we are using technology, our TMRW started 6 years ago. We are using our digital to engage our customer. And Citibank portfolio is basically how credit card and unsecured and given our capability of doing both secured mortgage and wealth. So we are actually cross-sell a lot of this customer base to our region. So hopefully, the earning will be much more than what we anticipated.

Thank you. Can we take the next question?

Chanyaporn from Bloomberg. Just going back -- I mean thank you for sharing on your property measures. But can you talk a little bit about price? Do you think that property prices in Singapore will soften this year after the measures. I have 3 questions. So second question, you talk about wealth flows and inquiries from customers. Can you say how much net new money have you received? And any from Credit Suisse? My third question, Credit Suisse AT1 bond sale is quite a big issue in Singapore and globally, did UOB sale Credit Suisse AT1 bonds?

Yes. I think your first question is whether housing prices -- home price will come down? Now I'm -- very difficult for me to predict. Singapore today, the fact is it reflects the government is very confident when they want to introduce this measure, right? And the demand is there. Singapore is a AAA country. People are willing to come and make a strategic move. And I hope that will sustain, stabilize a little bit. Even if we have to come down a little bit, I think it's generally quite good because that is part of the inflation that measure that we -- the government is trying to do, right, because housing is a big ticket item, right? Not just housing price per se, but you affect a lot of other things that the demand for higher salary will make Singapore less competitive. So that is my thought. I think I would see flat or maybe slower a little bit, right? And for the AUM, I mentioned in my speech, we're up by SGD 6 billion, okay? Now I can't tell you how much is from Credit Suisse, but I think it's a very unfortunate thing. I think I welcome competition. Competition is always good and healthy, okay? And I believe most of the players will benefit from that. And the thing what is it like?

Maybe I take the issue. So we sell Credit Suisse AT1 portfolio. We did, but middle of last year, that was 2022. We actually had advised customers to get out that portfolio because we don't look at return, we look at wealth preservation. We are not comfortable with what we see. So we literally went out and advised all customers to switch out. There's a very small fraction who think that they are better than the average bank that wants to hold on, but majority have already switched out. So our impact is actually very minimal.

Any more questions? [indiscernible], please?

Yes, I've had a question because of the capital, because of the bank's capital in the overseas in Europe, et cetera. I'm just wondering, what is the ideal capital mix between CET1, AT1 and Tier 2? And also, what is the CET1 you need to maintain your AA? And because, of course, all of you have a lot more CET1 if the Pillar 3, then you have the Tier 2.

I think MAS put a limit to how much we can put in CET1, AT1 and total capital, okay? There is a limit that put in above which it wouldn't be countered, okay, in that sense. And the AT1 and the Tier 2 are roughly around 2%. That's the limit set by MAS, which means that majority of it have to be in your core equity Tier 1. We are way below those limits on AT1, probably because of the strong CET1 that we have. Counted out that rating agencies actually both the regulators and rating agencies put a lot of focus on that, which we can't disclose, but to maintain our AA rating, and we are one of the few in the world, in fact, and 3 of them are concentrated in a small island like Singapore. There is a lot of focus to make sure that we maintain our capital strength, both by the [indiscernible] and the rating agencies. We are comfortable to say that we are guiding that a bit higher that we will keep it above 13%. And so I think with that, that will give me a prudent mix between growth -- dividend growth and the capital equity ratio, the CET1 that we talked about. So that's probably something that we are watching. And obviously, the worry about CET1, I made in my mind, that all Easter. I mean we're very worried about this a few quarters ago because of Citi and all. So we did a lot of RWA management. Of course, the bonus came out was the interest rate went up, but if the interest rates didn't go up, we have moved back to 13% by end of this year, but the interest rate help me, okay? That means I'm 1 year ahead of what -- 2 years actually ahead of what we want to be. So that is probably where we are. With this, we are extremely comfortable that I can go back to my organic strategy to focus if the market and the wholesale part can grow, we will support.

Your CET1 grew, because you put aside, your dividend payout was 49% for the full year of 2022, Yes? So you will keep -- is it possible to still keep that? I mean, of course, 1Q is 1.6% or whatever.

Yes. So that is our guidance, right? We have as long as our capital is above 12.5%, I think we already articulated to our shareholders that we will pay 50% of the earnings.

So, we are quite clear that if we maintain strong capital, which we are today and if the outlook doesn't, we don't look at the disasters outlook, I think we will pay 50% of it. So technically, I cannot promise, and I don't think I can promise a 74% profit for the year, because first quarter is a bit exceptional, but definitely profit will be higher than last year. So technically, you could expect higher dividend per share.

And then credit quality. So this quarter was very benign. But what do you see -- what the assumptions in your 25 bps?

Yes. I think it's still within our guidance of 20 to 25, right? We noticed there could be some uptick, right, because given the global economy, especially people are watching about some of the major cities like commercial real estate, but our percentage is 2%, which is small. They are fairly strong, sponsor and also fairly well capitalized.

Sorry, just in terms of your portfolio. There is in U.S. 2%?

2% in U.S., yes.

So maybe just to add to Ee Cheong, the credit cost that he says we're comfortable to go in the long term. In the short term, we might have some NPL uptake, but our portfolio, a lot of those that we are going in is very strong. So of course, there is the recent worry about commercial real estate, okay? And if you zoom down the commercial real estate, the actual worry is about office space. okay? Because if you look at commercial real estate, we have increased those that look for data centers, et cetera, they are okay. okay? And a lot of -- some of them that are residential that are actually fully this out there, so okay. So there is a focus on what we call office space. And the worry is on gateway Citi okay, ready to put it bluntly is U.S. And to be specific, is the East Coast of U.S. at press, okay? And maybe it occupancy in New York. So I think we have gone through those. We have 1 or 2 that we think are on the fringe, but the good news is that, number one, this are quite heavily collateralized because our LTV is 50% or below. And number two is they have very strong sponsors, okay? Because 1 or 2 actually the sponsors [indiscernible] if they think that cash flows. So we do have 1 or 2, but my credit cost coming out even if there's a slight uptick in NPL. My credit cost of 25 basis points is not that enough because I can say that we put quite a fair bit of GP and that's why I'm building up my -- I used the other ratio that I called GP overperforming loans, okay? That is because they are still -- we think they're still okay, but you don't know how fast it will be bad, rather than once they become bad, then you set aside, and that's the one that I'm building up. So that's the one that you saw that we have been gradually moving from 80, 90 now to 100 basis points and 100 basis points brought me all the way back to even pre-COVID areas. okay? And I don't really need that, but I'm just anticipating the weakness. So we do have reserve in there should some of this bucket come out. That's over and above what we anticipate.

So you still have your management overlays that?

Okay? I can't tell you but actually I added. I actually added management overlay this quarter.

Any other questions from the floor? [indiscernible]?

[indiscernible] Mr. Ee Cheong could you elaborate on the sources of growth for the AUM? Just wondering whether you're getting new business from the family offices that are coming here to Singapore.

Yes. Family office. I would say, even corporates because we are focusing on wholesale, on retail, private wealth. I would say, a combination of few sources. Okay.

Any other questions?

[indiscernible] has a follow-up who asked question earlier. The commercial real estate exposure in the U.S., how much is UOB's total exposure?

In the U.S. less than 2%. Office space is on [indiscernible].

It's actually very small because end of the day, we are -- as an organization, we are not focusing on some of the Western country, right? Whatever balance sheet we put into U.S., the U.K. to all this country is company must have aspiration of coming to Asia, right? This is where we can support them. And then ultimately, the real big factor is they are moving to Asia that fit our overall strategic purpose. We don't just -- on a stand-alone compete with the American bank to look at housing to look normal. if there is, it's very, very small, okay? These are all franchise customers.

[indiscernible] question. Office space in New York is less than 1% of our portfolio.

Thank you, Jonathan. Any questions from online? We don't see any hands. [Operator Instructions]. Any other question, Goola?

So there is some exposure to some of the Chinese beats that are listed in Singapore. I mean I know we can't mention it, but there's some exposure to Chinese real estate is that also very well collateralized?

The sponsor is actually very strong.

Okay. So the LTVs of this is like, is it less than 50%?

I think between 50% to 60%.

It seems like property is a very hot topic this quarter.

There's been so many stresses in the property market globally. It's not just the U.S., there is some stress in China as well.

Thank you, Goola. Any other areas of interest?

Going back to the Citibank question. I'm looking at the geographical segmentation of the income and the loan. Indonesia is still small, but I assume because you haven't completed the acquisition. I wonder what will be the mix of earnings across the loan book of the group once in the [indiscernible] included. Will it be a big jump once you complete?

The Citibank portfolio. No, Citibank actually in Indonesia is quite small. The biggest is in Thailand. Thailand, Malaysia and then Indonesia and Vietnam. So Indonesia is still way for us to grow, right? Now that we have the people, we have the technology platform, I think Indonesia is also poised to grow. But immediately, I think the biggest market for us is Thailand and Malaysia.

Any other questions from the floor? I guess it's another very good quarter for us. This is another record. So last call for any other questions.

Can I just ask quickly the increase by 6 billion in AUM? Is that in U.S. dollars or a Singapore dollar?

That is Sing dollars.

So SGD 6 billion, this is net new money.

So any last comments from Mr. Wee or Mr. Lee?

Anyway, thank you for coming. Whether result is good, no good, but I value your presence, right? So thank you very much and enjoy your cup of tea or coffee, you say on the way up.

Thank you, Mr. Wee. Thank you, Mr. Lee. That's all the time we have for today. Thank you for joining us this morning, and we wish you a good day ahead. Thank you.