UOB Profits Soar; Announces $3 Billion Capital Return

United Overseas Bank (UOB) reported a record net profit of S$6 billion for 2024, marking a 6% increase from the previous year, supported by strong growth in fee, trading, and investment income. The bank announced a S$3 billion package over the next three years to return surplus capital to shareholders, including special dividends and a new S$2 billion share buyback program to coincide with its 90th anniversary in 2025. The fourth-quarter profit rose 9% to S$1.52 billion, surpassing analyst expectations, thanks to increased net interest income and loan growth. UOB's integration of Citigroup's consumer banking businesses in Southeast Asia contributed to its performance, with a focus on cost management and enhancing customer offerings. Despite global uncertainties, the bank remains optimistic about the resilience of the ASEAN region, driven by retail spending and foreign investments. The announcement led to a brief all-time high in UOB's stock price, reflecting positive investor sentiment.