Chairman's Statement

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Chairman's

Statement

Assuring Continued Progress Through Discipline

Since my appointment as Chairman, I have become accustomed to the quality of the people at UOB. They are professionals who lead and are guided by our values. Their deep understanding of each local environment is proven in the timeliness and thoughtfulness of our products and services. Following Management’s disciplined and customer-focused approach, our people grow our business for the long term, whatever the environment.

2018 saw geopolitical uncertainty, trade tensions and market volatility which bore down on economies, industries and businesses. Against this backdrop, UOB achieved healthy growth across our core franchise, with our net profit rising to another record of $4 billion. This was an 18 per cent increase over the year before. In view of this performance, the Board is pleased to announce a final dividend of 50 cents and a special dividend of 20 cents per ordinary share.

Guiding the Way Forward

We do not take success for granted and seek to improve what we do and how we do it. The Board too has to see to the Group’s continued fit and relevance for the future. To this end, the Executive Committee took on the Strategy Committee’s role with an enlarged scope that includes the development and execution of policies for our strategic priorities.

A main priority is our people. I have long held the view that people – the core of any organisation – determine its success and longevity. At UOB, we call our core our greatest asset. Hence, the Remuneration Committee was renamed the Remuneration and Human Capital Committee. It now guides the recruitment, development and retention of our people. We also have to safeguard a deep pool of our own talent and to build bench strength across the Group for senior management roles. Other enhancements saw the Board Credit Committee being subsumed under the Board Risk Management Committee which oversees all material risks of the Bank.

The Board and Management set aside time during the year for robust discussions on strategic matters. This would ensure alignment as we make our way forward. We held our annual country offsite in Shanghai. There, the Board gained a deeper understanding of the operating environment in China and its potential. It also reaffirmed our regional strategy. In Singapore, we brought together senior executives and country managers from across our network to review holistically our various lines of business. It reinforced collaboration between Board and Management as we were single-minded in keeping our franchise on the sustainable path of growth.

Advancing Our Next Phase of Growth

Our growth has been underpinned by our technology infrastructure that enables us to tap the region’s business flows and rising affluence. It gives us speed to market, flexibility for localisation and facilitates a seamless, secure customer experience. That omni-channel experience – from the physical to digital – is designed to suit the diverse needs and wants of all our customers.

Our past investments enable us to create solutions for the future which help businesses grow and people prosper. In thinking ahead for tomorrow’s ASEAN consumers, we changed the business model of digital banks and created TMRW. This is the first mobile-only digital bank designed for ASEAN millennials.

We forge ecosystems of partners with expertise and capabilities to meet our customers’ lifestyle needs, from property to cars to everyday payment. We also persist in developing our own people’s capabilities. As an example, we hone the skills of our industry specialists for sectors which help drive regional economies. Across the board, our people must be equipped to perform with the ability, pace and agility that the future will demand.

Being Steadfast Amid Volatility

The year ahead is expected to present heightened uncertainties and muted growth. These will have some bearing on us and our customers. However, we are confident of the region’s potential. As we size up and seize the opportunities, we will do so with the right balance of risk and responsibility. This will keep us in good stead as we pursue sustainable profit in a manner that will stand up to scrutiny and the test of time.

Acknowledging Contributions

On behalf of the Board, I thank Director Franklin Lavin for his significant contributions to the Board over the last nine years. The Board has greatly benefitted from his insight, experience and knowledge. We wish him the very best as he retires from the Board. We also thank Management and our people for their achievements, commitment and determination throughout the year. To our shareholders and our customers, we are very grateful for your continued support for UOB.

Wong Kan Seng

Chairman

February 2019

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