In a year that marked its 90th anniversary, UOB Group celebrated an impressive financial milestone by posting a net profit of S$6.0 billion for the fiscal year ending December 31, 2024. This represented a commendable 6% increase from the previous year, setting a new record for the bank. To celebrate and share these gains with shareholders, the board has proposed a final dividend of 92 cents per ordinary share. Together with an earlier interim dividend of 88 cents, the total payout for the year sums up to S$1.80 per ordinary share, reflecting a distribution rate of roughly 50% of the profits.
As part of its strategic move to manage surplus capital, UOB presented a S$3 billion plan which will unfold over the coming three years. This plan involves administering special dividends in tandem with a share buyback initiative. Notably, in 2025, shareholders can look forward to a special dividend of 50 cents per share, injecting S$0.8 billion back to them—an apt gesture commemorating UOB’s storied legacy. In addition, a S$2 billion share buyback scheme has been launched, ensuring that shareholder value continues to climb.
The Group’s achievement this year stems from a winning combination of robust fee income growth and successful trading and investment ventures. Specifically, net interest income maintained a robust stance at S$9.7 billion. While loans saw a healthy growth rate of 5%, fluctuations in interest rates delicately squeezed the net interest margins. Contrarily, net fee income ascended by 7% to reach S$2.4 billion, attributed primarily to an upsurgence in wealth fees, heightened credit card activity, and increased loan-associated fees. Not to be overlooked, UOB’s asset quality held strong with the non-performing loan ratio remaining steady at 1.5%.
On the business banking front, Group Wholesale Banking demonstrated commendable momentum. Trade loans surged by 20% year-over-year, buoyed by a transactional banking business that now accounts for over half of Group Wholesale Banking revenues. Cross-border income has also seen considerable growth, currently constituting over one-fourth of the segment’s earnings.
UOB’s retail segment has not been left behind, witnessing a 18% leap in credit card fees, buoyed by consumer spending trends and an expansive regional footprint. Wealth management income soared by 30%, reflecting a renewed investor confidence. Net new money inflows continued on an upward trajectory, elevating the Group’s wealth management assets under management to a staggering S$190 billion, translating to an 8% growth compared to the preceding year. The bank also bolstered its customer base significantly, adding over 850,000 new clientele, many digitally inclined—marking a novel feat.
Sustainability endeavors remained a cornerstone of UOB’s 2024 agenda. Their second progress roster on the net-zero pledge highlights admirable advancements across critical areas, especially the power sector. By the close of December, their sustainable financing portfolio had burgeoned by 43% to a remarkable S$58 billion, underlining their dedication to fostering environmentally-conscious growth.
CEO Mr. Wee Ee Cheong expressed both pride and optimism. “Achieving a record net profit in 2024 was fueled by healthy fee income, and vigorous trading and investment revenues. Our foresight in regional investments is reaping rewards, and we foresee ongoing revenue progression ahead,” he noted. While acknowledging the global economic uncertainties, Mr. Wee holds a positive outlook on ASEAN’s resilience, driven by solid domestic consumption and a surge in foreign investments. He reassured stakeholders of UOB’s strengthened market positioning and commitment to seizing opportunities amid shifting trade and supply chain paradigms.
He further highlighted the successful integration of Citigroup portfolios in key markets, with the integration in Vietnam approaching completion this year. The Group is maximizing cross-sell strategies, while tightly controlling costs to deliver outstanding services to a broadened client base.
With its 90th birthday come and gone, UOB stands tall thanks to a steadfast community of stakeholders, customers, and partners. Mr. Wee reiterated the bank’s disciplined approach to securing long-term growth while ensuring value for those it serves.
Reflecting on FY24, the narrative remains clear: the bank grew its net profit by 6% to a new high of S$6.0 billion, fueled by solid income streams from fees and investments. Excluding one-off charges, core earnings touched S$6.2 billion. Even in light of marginally narrower net interest margins, their strategic loan growth and increased fee income underscored UOB’s financial prowess. Additionally, a 10% rise in other non-interest income highlighted the gains from enhanced treasury management activities and a thriving trading environment.
Come the fourth quarter of FY24, a 5% dip in net-profit was observed, yet even this narrative echoed resilience and strategic finesse. Holding steady against expansive efforts to integrate the Citi portfolio, UOB’s focus remains on growth, efficiencies, and the enduring value creation for both their customers and investors.
Impressive profit figures from UOB. But what about their impact on the environment? Are these green financing claims just a marketing gimmick?
Exactly my thoughts! Banks tend to greenwash a lot while still funding fossil fuel industries.
It’s frustrating. They should lead by example in sustainable finance.
No doubt UOB’s financial achievements are noteworthy, but let’s not forget the growing economic inequality. Most of these profits go to shareholders, while average workers see minimal wage growth.
It’s a capitalist world. Investors take the risks, so they deserve the rewards. Everyone benefits when companies succeed.
Their regional expansion is quite strategic. Adding 850,000 customers in a year is no small feat!
True, but can they sustain this growth with increased competition from digital banks?
As long as they innovate and provide value, they have a fighting chance.
Glad to hear about their focus on digital clientele. That’s where the future lies as traditional banking becomes obsolete.
Tech is useful, but over-reliance on digital systems might alienate older customers. Banks need to strike a balance.
UOB’s 6% profit increase is decent, but can we trust these numbers? Accounting can be skewed to look favorable.
The 50% profit payout as dividends seems quite generous. But is this the best way to use these funds?
Maybe they should reinvest more into the business, especially into sustainable projects.
Agreed! Sustainability can drive long-term profitability.
With net fee income climbing, it’s clear UOB is leveraging credit card debts. But what’s the real cost on consumers?
Credit cards are loans. If users spend within their means, there’s no problem. Personal finance education is key.
The share buyback is a smart move to increase share prices, but might not be enough if global markets continue to be volatile.
Their 43% increase in sustainable finance is commendable. Hope more banks follow UOB’s lead on this front.
I’ll believe the sustainability hype when I see real changes in energy and resources they’re backing. Still skeptical.
ASEAN’s resilience is impressive amidst global economic uncertainties. UOB seems well-positioned to capitalize on this.
UOB’s handling of non-performing loans is praiseworthy. But with rising interest rates, credit risk could still pose a threat.
As long as they keep their NPL ratio at 1.5%, they’re managing risk well. But who knows what the future holds?
Kudos to UOB for integrating Citi portfolios. But will this lead to better service for consumers or just more market dominance?
Monopoly concerns are valid. Let’s hope for innovative collaborations rather than just an increase in market share.
The 2025 special dividend of 50 cents per share sounds intriguing. A good incentive for current investors.
I’m more interested in how UOB plans to maintain loan growth despite narrowing interest margins.
Strategic sector targeting might help, but it’s a tough balancing act with global economic slowdown.
The narrative of ‘resilience amidst global challenges’ is a recurring theme. Hope it holds true for UOB unlike some other banks spiraling around.
ASEAN’s promising future gives me confidence. With banks like UOB leading, the region will only prosper.
Why is there little mention of UOB’s role in supporting SMEs? Isn’t that critical for emerging markets?
Good point! Supporting SMEs is vital for sustainable economic growth. More efforts in this area could be beneficial.