UOB Group has announced a record net profit of S$6.0 billion for the financial year ending December 31, 2024, marking a 6% increase from the previous year. The Board has proposed a final dividend of 92 cents per ordinary share, which, combined with an interim dividend of 88 cents per share, totals S$1.80 per share for FY24. This represents a payout ratio of approximately 50%.
The bank's capital distribution strategy includes a S$3 billion package to distribute surplus capital over the next three years through special dividends and share buybacks. A special dividend of 50 cents per ordinary share is recommended for 2025, amounting to S$0.8 billion. Additionally, UOB has introduced a new share buyback program worth S$2 billion.
The group's net profit growth was driven by strong net fee income and trading and investment income. Net interest income remained stable at S$9.7 billion due to healthy loan growth of 5%, despite the impact of interest rate movements on net interest margin. Net fee income increased by 7% to S$2.4 billion, led by significant growth in wealth fees and higher credit card and loan-related fees.
Group Wholesale Banking saw strong performance with trade loans increasing by 20%. Transaction banking business continued its consistent growth and now accounts for more than half of the Group Wholesale Banking income. Cross-border income also rose significantly.
Group Retail reported robust performance with credit card fees growing by 18% year-on-year and wealth management income rising by 30%. The group added over 850,000 new customers in FY24, about half acquired digitally, expanding its retail customer base in Southeast Asia to nearly 8.4 million.
In sustainability efforts, UOB issued its second progress report on its net-zero commitment in November 2024, noting substantial progress across priority sectors such as power. By the end of December 2024, the sustainable financing portfolio increased by 43% to S$58 billion.
Mr Wee Ee Cheong, Deputy Chairman and CEO of UOB, stated: “The Group achieved a record net profit in 2024, driven by strong fee income as well as robust trading and investment income.” He expressed confidence in ASEAN's resilience amid global uncertainties due to factors like higher domestic retail spending and foreign direct investment influxes.
In terms of financial performance compared to FY23, excluding one-off expenses, core net profit reached S$6.2 billion while core operating expenses rose by 5% to S$6.1 billion as investments in regional capabilities continued.
For Q4 compared to Q3 FY24 results showed a slight decline in net profit by 5% to S$1.5 billion due partly to seasonal slowdowns in certain activities after an exceptional third quarter that benefited from market volatilities.
Asset quality remained stable with a non-performing loan (NPL) ratio at 1.5%. The group's capital position was strong with Common Equity Tier 1 Capital Adequacy Ratio at 15.5%, maintaining healthy liquidity coverage ratios well above regulatory requirements.