Questions posed at United Overseas Bank’s (UOB) 84th annual general meeting (AGM) ranged from its loan book and commercial real estate (CRE) to gold, private credit and directors’ fees.
In November 2025, UOB announced “pre-emptive” general provisions of $615 million amid macro uncertainties and sector-specific headwinds.
A key driver of the pre-emptive general provision (GP) was due to the declines in collateral valuations in commercial real estate (CRE) in Hong Kong and the US.
At the AGM on April 17, group CFO Leong Yung Chee said that the HK CRE sector remains “fairly nuanced” at the moment and believes the situation will take some time to be resolved. Meanwhile, the bank saw an improvement in recoveries for the US, as reported in its results for the 4QFY2025 ended Dec 31, 2025.
Gold ‘a very hot item’
Other questions centred on the bank’s gold bullion following sharp spikes in gold prices last year.
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Deputy chairman and CEO Wee Ee Cheong described the business as “profitable” but declined to elaborate further as it is confidential. He added that the business is also “not material enough”, which is why it is not disclosed.
Wee also noted that the bank is seeing more interest in the precious metal when gold prices are high. “Gold is a very hot item today,” he adds.
On Singapore’s plan to become a gold trading hub, Wee said the move is “the right thing to do” and the bank is “part of the team” along with other local and foreign banks.
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UOB, given that it is the only bank selling physical gold, has an advantage as taking physical custody is going to be “very, very expensive”.
When asked if the bank intended to tokenise gold into crypto, chairman Wong Kan Seng said that the bank had “no plans” at the moment.
Banks over private credit; UOB ‘able to manage’ if war drags out
UOB has no direct exposure on private credit, save for an “immaterial” indirect stake.
“I personally don’t like private credit,” says Wee, adding that investors should turn to banks to finance their needs instead, as it is safer given that the banks are regulated by the Monetary Authority of Singapore (MAS).
On the Middle Eastern conflict, the situation is “still very fluid” although the bank is monitoring the situation closely.
While the unintended consequences could be worse if the war is protracted, Wee says the bank’s management has conducted stress tests and found that it “should be able to manage”.
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He adds that the bank will also look at helping its customers, as its balance sheet is “strong enough” and that it has a “social responsibility” to do so.
Directors’ fees
On directors’ fees, which totalled $4.45 million, Tracey Woon, independent director and chairman of the remuneration and human capital committee, said the disparity between the compensation of the members and the chairman has been the practice “for some time”.
“I think it’s pretty standard,” she says. “Not least, we have to thank our chairman; he works really hard as well.”
Woon also noted that the compensation was also to attract the right talent and that the last revision was five years ago.
All the board directors take 30% of their fees in shares, and, as long as they remain on the board, they will not sell their shares, she adds.
All resolutions were passed.
Shares in UOB closed 12 cents lower or 0.32% down at $37.40 on April 17.
