“We have in place robust processes for people and leadership development to ensure smooth succession at the senior levels that will in turn ensure stable leadership,” reads the statement released on April 7.
The bank adds that both internal and external candidates will be evaluated “for the best fit” when it comes to considering successors for senior management roles.
On dealing with the rising uncertainties, which may lead to the bank’s retail customers potentially tightening their belts, UOB says it has a “diversified” business that spans deposits, wealth management, secured loans (mortgages) and unsecured business, including cards and loans, a model which has served it well.
While it acknowledged that market uncertainties and volatilities will impact consumer sentiments and affect their attitudes towards spending, savings, investments and loan commitments, the bank is “vigilant and monitoring the evolving situation closely”.
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In its businesses in its four Asean markets, Malaysia, Thailand, Indonesia and Vietnam, UOB says it expects its cost-income ratio (CIR) in these markets to decline over the next few years from the rolling off of the one-off costs from the Citi acquisition.
“Over the last two years, we have incurred more than $700 million of one-off costs associated with the Citi acquisition. To date, we have integrated three out of the four markets that we acquired from Citi and will be completing the integration of the Vietnam portfolio this year,” says the bank. “With the rolling off of the one-off costs, our group CIR declined from 45% in FY2023 to 44% in FY2024,” it adds, noting that it targets its CIR to be around the low 40s by 2026.
Also in Asean, the bank says it is managing its portfolios “more cautiously” through “tightened origination in higher risk segments and proactive exposure management”. That said, it has not seen any “material deterioration” in its consumer portfolios in its four markets. Its lending portfolios are predominantly secured while its consumer businesses in these markets, which target the affluent and mass affluent segments, have been more resilient throughout economic cycles.
On the possibility of UOB paying out dividends quarterly instead of its current half-yearly basis, the bank says it will “continue to review this on a periodic basis”.
