United Overseas Bank Ltd (UOB) reported a record net profit of S$6.05 billion, up 6%, for the financial year ended Dec 31, 2024 (FY24) compared to S$5.71 billion in FY23.
The surge in net profit was driven by strong net fee income that grew 7% year-on-year to S$2.4 billion, and trading and investment income.
Net profit for the fourth quarter ended Dec 31, 2024 (4Q24), was 5% lower at S$1.5 billion compared to S$1.6 billion in 3Q24.
Nevertheless, UOB Chief Executive Officer Wee Ee Cheong said the financial institution’s long-term investments in regional platforms and capabilities are paying off, and they expect continued revenue growth this year.
As such, UOB recommended a final dividend payment of 92 cents per ordinary share. Together with the interim dividend of 88 cents per ordinary share, the total dividend for FY24 will be S$1.80 per ordinary share, representing a payout ratio of approximately 50%.
As part of the bank’s capital distribution strategy, UOB also announced a S$3 billion package to distribute surplus capital over the next three years. The package comprises special dividends and share buybacks. A special dividend of 50 cents per ordinary share is recommended in 2025, distributing S$0.8 billion of UOB’s surplus capital.
“This is also to mark the bank’s 90th anniversary. In addition, a new share buyback programme of S$2 billion has been introduced,” Wee said in a statement.
Oversea-Chinese Banking Corp is set to report quarterly results on Feb 26.
