SINGAPORE: UOB Group today announced a S$3 billion package as part of the Bank’s capital distribution strategy to reward its shareholders. The package includes special dividends and share buybacks to be delivered over the next three years.
A special dividend of 50 cents per ordinary share is recommended with payment over two tranches in 2025, returning S$0.8 billion of surplus capital. This is also to mark UOB’s 90th anniversary. A new share buyback programme of S$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.
UOB Group’s capital position will remain strong following the capital distribution. The package is estimated to optimise UOB Group’s Common Equity Tier 1 Capital Adequacy Ratio by 1 percentage point based on its capital position as at 31 December 2024.
Mr Wee Ee Cheong, UOB’s Deputy Chairman and Chief Executive Officer, 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.”
