UOB’s net profit grows by 6%, hitting hefty $6 billion mark in FY24

SINGAPORE: UOB Group has reported a solid net profit of $6 billion for the financial year ended 31 December 2024 (FY24), reflecting a 6% increase from the previous year. The bank’s robust performance has been driven by strong growth across multiple business segments and strategic initiatives.

In line with its positive financial results, UOB’s board has proposed a final dividend of 92 cents per share, bringing the total dividend for FY24 to $1.80 per share. This represents a payout ratio of 50%, delivering value to shareholders.

As part of its capital distribution strategy, UOB has outlined plans to return $3 billion to shareholders over the next three years. This will include special dividends and a $2 billion share buyback. A special dividend of 50 cents per share, totaling $0.8 billion, has been proposed for 2025 in celebration of the bank’s 90th anniversary.

UOB’s Wholesale Banking division saw notable growth, with trade loans rising by 20% year-on-year. Transaction banking now contributes more than half of the total wholesale income, further bolstering the division’s performance. Additionally, the segment’s cross-border income grew significantly, making up more than 25% of total revenue, highlighting the bank’s increasing focus on international markets.

Retail Banking also delivered strong results, with credit card fees increasing by 18% and wealth management income surging by 30%. High-net-worth assets under management grew 8% to reach $190 billion, driven by healthy net new money inflows.

The bank’s customer base expanded significantly, with 850,000 new customers added in FY24. Notably, half of these customers were acquired through digital channels, bringing UOB’s Southeast Asian retail customer base to 8.4 million.

In addition to its financial growth, UOB made significant strides in sustainability, with its sustainable financing portfolio growing by 43% to $58 billion. The bank’s ongoing commitment to responsible finance aligns with its broader corporate strategy of driving long-term value for both shareholders and society.

—

Featured image by DepositPhotos