UOB Malaysia aims for double-digit growth in retail, wholesale banking

KUALA LUMPUR, Aug 14 (Bernama) -- United Overseas Bank (Malaysia) Bhd (UOB Malaysia) has set its sights on achieving double-digit growth across its retail and wholesale banking segments over the next three years, bolstered by strategic alignment with Malaysia’s economic ambitions.

Its chief executive officer Ng Wei Wei said that based on the bank’s three-year strategic plan from 2020 to 2023, UOB’s current accounts and savings accounts compounded annual growth rate stood at single-digit growth of nine per cent.

“For the next three years (2023-2026), we are aiming to achieve about 18 per cent growth.

“We are committed to executing our strategy effectively, and we are confident that we will continue to outperform the industry with double-digit growth across both retail and wholesale segments,” she said during a session “Continued success in the region: UOB Malaysia” at the bank’s Corporate Day 2024, here today.

Ng said the bank also plans to grow its retail customer base from 1.5 million to 2 million by leveraging its omni-channel approach, which has proven to deliver significant income growth. 

“UOB’s retail segment, particularly in unsecured loans and wealth management, is expected to contribute to this growth, with a target to increase wealth assets under management by 20 per cent.

“In the wholesale banking segment, UOB Malaysia is well-positioned to support the nation’s economic growth, particularly in key sectors such as industrial, energy, and consumer goods,” she added.

She said the bank’s focus on cash management, trade, and treasury services is anticipated to constitute over 70 per cent of its wholesale income, up from 59 per cent in 2019.

“Our growth strategy is very much aligned with the Malaysian government’s progressive master plans, which focus on balanced regional development and high-impact sectors. 

“With our extensive branch network across the country’s key economic corridors, we are well-placed to contribute to and benefit from these growth opportunities,” she said.

Ng also highlighted UOB Malaysia’s commitment to sustainability, citing the bank’s efforts in financing renewable energy projects in Sarawak and supporting the adoption of solar power across the country. 

The bank’s recent initiatives in green financing and supply chain resilience have positioned it as a key player in Malaysia’s journey towards a net-zero economy, she said.

“With a track record of strong financial performance, including a 30 per cent income growth over the past three years, UOB Malaysia is confident in its ability to achieve its ambitious growth targets. 

“The bank’s return on equity and fee-over-net-interest-income ratios are among the highest in the industry, underscoring its commitment to delivering value to shareholders,” she said.

-- BERNAMA