SINGAPORE – UOB will consider a share buyback, among other options, chief executive officer Wee Ee Cheong said at an earnings briefing on Nov 8, sending the bank’s shares rallying.
The stock jumped $1.90 or 5.7 per cent to $35.20 as at 10.23am on Nov 8.
UOB is now trading at a record high, similar to rival DBS Group Holdings whose stock surged a day earlier after it unveiled a new $3 billion share buyback programme and signaled more of such moves may come.
The bank is “actively” looking to take full advantage of capital management, hopefully by the end of the year, according to Mr Wee. UOB has excess capital of about $2 billion to $2.5 billion, said chief financial officer Lee Wai Fai.
The lender earlier reported higher-than-expected earnings for the third quarter, driven by record fees underpinned by wealth management, brisk trading and investment. UOB also flagged a pickup in loans growth in 2025.
South-east Asia’s third-largest bank by assets said July-September net profit jumped 16 per cent to a record $1.61 billion from $1.38 billion a year earlier. This beat the mean estimate of almost $1.5 billion from four analysts polled by LSEG.
“Amid a volatile global economy, South-east Asia stands out as a bright spot,” said Mr Wee in a statement. “We are confident of Asean’s long-term potential, bolstered by strong economic fundamentals and a surge in foreign direct investment inflows with shifting supply chains,” he added.
Mr Wee projected high single-digit loan growth for 2025, versus low single-digit for 2024, according to slides accompanying the earnings results.
The bank expects double-digit fee growth, higher total income, cost-to-income ratio at 41 per cent to 42 per cent and credit costs within 25 to 30 basis points range, all broadly in line with