United Overseas Bank has reiterated its Asean growth ambition, putting this region as one of its priorities in the decade ahead.
"We will strengthen our position as the leading trade bank in Asean, build a profitable and scalable consumer franchise and deliver sustainable returns through cycles," says deputy chairman and CEO Wee Ee Cheong in his annual report message.
The bank's volume of trade loans in 2025 was up 26%.
According to Wee, Asean is entering a new phase of growth, underpinned by rising affluence, ageing populations and deeper regional integration.
"These shifts will drive demand for smarter banking, long‑term wealth planning and seamless regional connectivity," he says.
Economists are projecting Asean to become the world's fourth-largest economic bloc with a GDP of US$5.8 trillion come 2030.
See also: UOB cuts CEO Wee’s pay package by about 20% after profit slump
By 2030, total FDI flows into Asean are expected to reach US$370 billion, which will make this the world's third most popular destination for foreign investments, due to supply chain shifts, geopolitical realignments, and rising consumer affluence in the region. In the first half of 2025 alone, FDI into Asean grew 10.2% y-o-y, led by Singapore and Thailand.
Total trade flows, meanwhile, is projected to expand to around US$5.3 trillion.
UOB, according to Wee, is in a "sweet spot" to capture the region’s next stage of growth by better supporting its customers, thanks to ongoing investment in people, capabilities and technology.
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"Our regional connectivity is a clear differentiator. With our extensive footprint and long-standing regional presence, we offer deep local insights and expertise backed by our integrated regional operating platform," says Wee, whose bank operates around 400 branches across Asean.
Calling itself the "One Bank for Asean", UOB can support its business customers by nudging more foreign direct investment flows to the region, enable centralised treasury management and facilitate cross-border trade flows.
"The opportunity in Asean is structural and long-term," says Wee, whose grand father Wee Kheng Chiang founded the bank back in 1935. "We will stay focused, support our customers through cycles and create lasting value for shareholders and communities.
UOB will not be the only local bank keen on Asean. Oversea-Chinese Banking Corp, under newly-appointed group CEO Tan Teck Long, has recently announced plans to grow its business in Asean.
In contrast, Helen Wong, Tan's predecessor, was focused on building closer links to China and Hong Kong.
As a recap, UOB's earnings for FY2025 was down 23% to $4.7 billion, due mainly to provisions which UOB stresses is "pre-emptive" so as to have a comfortable buffer in the face of growing uncertainties. In line with the lower earnings, Wee's total pay has been cut by a corresponding 20% to $12 million.
UOB plans to pay a full-year dividend of $1.56 per share, which is a payout ratio of around 50% of its earnings. In contrast, the bank paid $1.80 for FY2024.
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Also, to mark the bank's 90th anniversary, UOB has announced a three-year $3 billion capital distribution programme that comprises of a special dividend of 50 cents per share paid in two tranches during 2025 and a $2 billion share buyback programme, of which about one-third was completed as of last year.
UOB's upcoming annual general meeting will be held on April 17. As of Feb 23, there are 67,735 shareholders.
UOB shares closed at $37.16 on March 19, down 0.13%. It is down 0.91% in the past year.
