UOB to return $3b of surplus capital over next 3 years

Special dividends, share buybacks come on the back of record $6 billion profit for 2024

- Sheila Chiang

UOB on Feb 19 said it is returning $3 billion of surplus capital to shareholders over the next three years as the bank delivered a record profit of $6 billion for 2024.

The package includes special dividends and share buybacks to be delivered over the next three years.

DBS on Feb 10 unveiled a new capital return dividend on top of a $3 billion share buyback plan unveiled in November, sending its shares soaring and sparking a wider bank rally.

UOB is proposing a special dividend of 50 cents per share to be paid over two tranches in 2025, returning $0.8 billion of excess capital. This is also to mark UOB's 90th anniversary in 2025.

A new share buyback programme of $2 billion has also been set up, where shares to be acquired from the open market will be cancelled. The programme is in addition to the share buybacks designed for the bank's long-term incentive plans for employees.

The bank has declared a higher final dividend of 92 cents per share for the second half of its 2024 financial year, up from 85 cents the previous year. This brings the full-year dividend to $1.80 per share, representing a payout ratio of about 50 per cent.

Deputy chairman and chief executive Wee Ee Cheong told a results briefing on Feb 19: "Our disciplined approach of pursuing long-term growth, visibility has served us well, and we are confident of enhancing shareholders' value in the years to come."