UOB Group has unveiled a S$3 billion package aimed at distributing capital to its shareholders. The initiative, announced on February 19, 2025, involves special dividends and share buybacks scheduled over the next three years.
The package features a recommended special dividend of 50 cents per ordinary share, which will be paid in two installments during 2025. This move is set to return S$0.8 billion of surplus capital and coincides with UOB's 90th anniversary celebrations. Additionally, a new share buyback program valued at S$2 billion has been introduced. Shares acquired through this program will be bought from the open market and subsequently canceled. This program complements existing share buybacks linked to long-term incentive plans for UOB employees.
Despite the capital distribution, UOB Group maintains that its capital position will remain robust. The initiative is projected to optimize the Bank's Common Equity Tier 1 Capital Adequacy Ratio by approximately one percentage point, based on figures from December 31, 2024.
In a statement regarding the announcement, Mr Wee Ee Cheong, Deputy Chairman and Chief Executive Officer of UOB said: "Our strong capital position reflects how we have strategically reshaped our business in recent years and the results achieved from our long-term investments in our regional franchise. We would like to thank our shareholders for their unwavering support with this capital distribution package. Following this, we remain confident in sustaining our growth momentum. Guided by our disciplined approach to balancing long-term growth with stability, we are poised to further enhance shareholder value in the years to come."