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http://www.channelnewsasia.com/stories/singaporebusinessnews/view/1218624/1/.html
UOB chairman Wee Cho Yaw to step down next year
By Linette Lim | Posted: 07 August 2012 1827 hrs
SINGAPORE -
Mr Wee Cho Yaw will step down as chairman of Singapore's United Overseas Bank in April 2013, after almost four decades at the helm.
The announcement was made by deputy chairman and CEO Wee Ee Cheong at the bank's first-half results briefing on Tuesday.
Mr
Hsieh Fu Hua, a former CEO of Singapore Exchange, will become the non-executive chairman of UOB.
Mr Wee Cho Yaw will be 84 years old by the time he relinquishes his chairmanship in UOB.
He will stay on as a director and will be bestowed the title of Chairman Emeritus at the conclusion of the next AGM. He will continue to provide guidance on UOB's growth.
CEO Wee said: "As far as the timing is concerned, I think at some point, he has to retire. And since Hsieh Fu Hua is on our board, we thought from the timing standpoint, it's no different whether (it takes place) this year or next year. As far as the strategy is concerned, I have been the CEO for the last five years, I don't think there will be any change, where strategy is concerned. This is basically a transition at the board level."
UOB's net profit in the second quarter grew 12.1% on-year to S$713 million.
This was buoyed by higher fee and commission income, which brought non-interest income 20% higher to S$629 million, and higher loans volume.
Net interest income rose 7.4% to S$981 million despite net interest margins remaining flat on-year at 1.92%.
This brought first-half net profit to S$1.4 billion, compared with S$1.74 billion for DBS and S$1.48 billion for OCBC.
The three local banks also gave guidance for slower growth in loans and loan yields, after giving initial guidance that they expect loan growth in 2012 to be in the "low teens".
DBS now expects loan growth to be around 10% while OCBC and UOB now see loan growth in the high single digits.
Mr Ng Kian Teck, lead analyst at SIAS Research, said: "In terms of growth, they have been looking at several strategies such as growing their fund management as well as lending to overseas corporates such as using NPN (non-performing loan notes). These are some strategies to grow income at a period when interest rates have been relatively low in Singapore."
The share prices of the three banks are up 20 to 30 percent so far this year, and analysts said these are unsustainable.
Mr Ken Ang, investment analyst at Phillip Securities, said: "We see that there might be limited upside potential, moving forward, and we feel that this might be a good time for investors to take in profit based on lower NIMs (net interest margin) guidance and lower loans growth."
- CNA/ir
i mean no harm, just stating what i saw.
