UOB seeks to double wealth AUM, trade loans by 2026

It aims to be the number 1 cross-border trade bank in ASEAN.

United Overseas Bank (UOB) is looking to expand its wealth and cards, and is looking to become a “top cross-border trade bank” by 2026.

The bank aims for wealth and cards to make up 50% of its retail banking income by 2026, according to a presentation on UOB Corporate Day 2024. CEO Wee Ee Cheong and chief financial officer (CFO) Lee Wai Fai spoke during the event.

As of 2023, 38% of UOB's retail income is from wealth and cards.

Speaking to attendees, Wee and Wai outlined plans for UOB's 2026 strategy. 

Amongst UOB's goals include doubling the assets under management (AUM) of its private banking business.

The bank aims for 40% of its retail income will eventually come from the ASEAN-4: Indonesia, Malaysia, Thailand, and Vietnam. In 2023, 33% of its retail income come from the four countries.

UOB cited its post-Citi integration synergy and ASEAN’s immense growth potential as key drivers to its expansion plans for its retail business.

Top cross-border trade bank
For its wholesale banking (WB) goals, UOB is aiming to be the number 1 cross-border trade bank in ASEAN.

To do so, UOB said that it plans to tap into the banking supply chains within ASEAN and Greater China and grow its market share to around 5% of trade assets in ASEAN. As of 2023, the bank holds US$22b in trade assets, about 1% of the market share.

Total trade within and within ASEAN rose 31% between 2020 and 2023, according to UOB, citing data from China customers, US census, ASEANstats, Eurostats, and UOB Research. 

Most of the pickup in ASEAN-related trade flows happened in the intra-ASEAN and China-ASEAN corridors, both which rose 34% during the period. As of 2023, ASEAN is estimated to have $4.6t in trade flow, based on data from the UOB Global Economics & Markets Research forecasts.

UOB aims to tap the trade flow in the ASEAN-4 markets, aiming for the region to make up around 25% of its WB income by 2026.

It is also looking to double its trade loans over the same period.

The bank is also looking to increase the amount of wholesale banking loans contributed by ASEAN-4 to around 20% by 2026, from 14% in 2023.

Amongst strategies include a pivot towards trade, cash management, and treasury. 

Including Singapore, UOB has around 8 million retail banking customers in ASEAN as of 31 December 2023