(Bloomberg) — United Overseas Bank Ltd. announced a S$3 billion ($2.2 billion) plan to distribute excess capital over the next three years as it reported fourth-quarter profit that met expectations.
Southeast Asia’s third-largest bank will introduce a new share buyback program of S$2 billion and plans a special dividend, the lender said in a statement on Wednesday. UOB also reported that net income for the three months ending December rose 3% to S$1.54 billion from a year earlier, largely in line with analysts’ estimates of S$1.5 billion.
The results were supported by lending growth, as fee income and other non-interest income were relatively unchanged from a year ago.
“Our long-term investments in regional platforms and capabilities are paying off, and we expect continued revenue growth this year,” Chief Executive Officer Wee Ee Cheong said in a statement.
UOB’s move underscores the strength of Singapore lenders, which have generated excess capital and are stepping up the return of some of this to investors. DBS Group Holdings Ltd. shares rose to a record last week after the region’s largest bank introduced a quarterly dividend program, on top of a S$3 billion share buyback plan unveiled in November.
It’s also the last earnings that Chief Financial Officer Lee Wai Fai presents. Lee will step down in April after two decades in the role and Leong Yung Chee, head of group corporate banking, will succeed him.
Oversea-Chinese Banking Corp is set to report quarterly results around the end of the month.
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