He adds that this is not the first time that the bank, in its 90-year history, has experienced volatilities and external shocks.
"Asean has weathered many crises before, and we believe in Asean's resilience," says Wee.
In a multi-polar world, where businesses and countries face greater urgency in diversified markets to "integrate more closely to create more value", this will "present opportunities" for the region to emerge stronger in the mid- to long-term".
To this end, UOB's strong balance sheet will enable the bank to "address risks and seize the right opportunities to grow," Wee continues, citing the Johor-Singapore special economic zone (JS-SEZ) as an example. "We are one of the early movers in driving investments into the [JS-SEZ]. To position ourselves for sustainable growth, we have been reshaping our business franchise with diversified client segments and product mix across our key markets. I'm pleased to update that we are making good progress," he says.
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Further to his remarks, Wee also noted that UOB's wholesale banking arm has enjoyed a "good revenue mix" with higher cross border and transaction revenue as well as higher fees thanks to its diversified client portfolio. The bank also invested in product capabilities and sector-specific solutions to capture connectivity and businesses across its network.
In retail banking, Wee noted the bank's "robust growth" in card fees and wealth management income, as well as continued investments in its TMRW digital bank app, which has been rolled out across its markets and including Vietnam "soon".
"These income drivers are recurring in nature, and I'm pleased with the results and progress made in growing our franchise," he says.
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With artificial intelligence (AI) and other new technologies transforming the finance sector and the broader economy, Wee pledged to accelerate innovation-led initiatives across the bank, which will seek to drive efficiency, unlock new opportunities and strengthen the bank's competitive edge.
'Still a growing child' when it comes to lowering CIR ratio
When asked about the bank's cost-to-income (CIR) ratio and whether it sees any reduction to its CIR with productivity improvements, Wee notes that that the bank is "still a growing child" and that it will "continue to grow in Asean".
Vietnam, in particular, is a country that has a "lot of potential" and the bank "must continue to invest in it", says Wee, who just returned from the country. Vietnam is also one of UOB's four markets, which include Malaysia, Indonesia and Thailand, outside of Singapore.
"The money that we've spent is to grow the organisation," says Wee. He adds that the cost of compliance and the cost of scam protection also took up a "fair bit" of the bank's expenses.
"Bear that in mind, I also want the CIR to be low... [As a shareholder], if I can earn as much as possible, why not? But I think that it's a necessary thing to do, to grow the business in a sustainable way.
A changing world
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Amid waning faith in the US dollar and US assets, UOB's chief risk officer, Chan Kok Seong, noted that the trend to de-dollarise is expected to continue.
That said, the bank is "well-positioned" to pivot to a multi-polar world where trade in different currencies will be more prominent. That said, the de-dollarisation is expected to be a slow process and not something that can happen overnight and that the bank is positioned to finance in different currencies across the region.
At the AGM, Chan shared that the bank does not take "unduly large" net open positions in the US dollar (USD) even though its book has about 30% to 40% of its assets denominated in the dollar.
When asked whether UOB is connected to China's Cross-border Interbank Payment System (CIPS), its version of the SWIFT (or Society for Worldwide Interbank Financial Telecommunications) system, UOB's head of group strategy and transformation, Federico Burgoni, said the bank is considering joining alternatives to the SWIFT platform and is also looking to developing its proprietary platform.
When asked about the bank's decision to sell its retail banking business to Fubon Bank (China) on Feb 24, Chan says the bank has always believed that it will profit from China but not in China.
Instead, the bank prefers to focus on promoting Asean instead of competing in China, where its exposure is modest.
"China is a big country [where] we only have 15 branches," says Wee. "No matter what we do, it's not going to make a big difference."
On the sale, UOB's chief financial officer (CFO) designate, Leong Yung Chee says the size of the transaction is "negligible" and that the bank's focus on China is on its wholesale business.
Green finance, a $58 billion sustainable finance book
On green finance, Eric Lim, UOB's chief sustainability officer (CSO), says UOB remains committed to its net zero targets. The bank is also "making good progress" with its "ambitious but pragmatic" targets.
So far, the bank has built up a $58 billion sustainable finance book in various sectors including renewable energy financing, electric vehicles (EVs) and sustainable trade.
At present, the bank also remains committed to exiting coal financing by 2039, a move that comes in contrast with US banks who are still open to financing new coal.
"As [our] CEO says, we'd like to take a long-term view and we don't want to move in and out of the market on trends," says Lim. Recognising the challenges of energy transition within Asean, Lim says the bank will keep its stance and see which strategies make the most sense.
Share buybacks
On the bank's decision to stick to its plan of executing its share buyback programme over next three years, Leong said that the programme will be done in a "prudent and disciplined way". He adds that the buybacks are not done by calling market conditions but by conducting them in a "disciplined and prudent manner" over the stipulated time period.
Management renewal
With Wee in his 70s and with the bank in its 90th year, shareholders have asked about its succession plans.
In his speech, Wee noted that the bank remains focused on bringing long-term value to its customers, shareholders and the community.
"This has been institutionalised by my leadership team including the younger generation that has been progressively introduced in the past year," he says.
"Renewal is an ongoing process. And we have a robust process in place. I personally spend much time and effort to grow our own timbre, ensuring that each growing tree is rooting our values of honour, unity, commitment and enterprise," he adds. "Our commitment to a strong UOB culture goes beyond our organisation. We believe in doing right by our communities."
On maintaining the bank's return on equity (ROE), Wee said he remains confident and that one has to take a long-term view.
"This is a short-term volatility. Situations can change," he says. "In fact, if the market price is low, you should buy on weakness."
All seven resolutions at the AGM were passed.
Shares in UOB closed 50 cents higher or 1.44% up at $35.30 on April 21.
