UOB's 2025 profits plummet 23% as CEO pay takes a hit
United Overseas Bank (UOB) reported a sharp decline in profits for 2025, with annual net earnings falling by 23 percent to S$4.7 billion. The Singapore-based lender also cut its CEO's total pay by nearly a fifth, reflecting broader financial challenges and economic caution.
The bank's full-year net profit dropped to S$4.7 billion, down from the previous year, while fourth-quarter earnings fell 7 percent to S$1.41 billion. UOB attributed the decline to higher general allowances set aside earlier in 2025, aimed at strengthening provision coverage amid ongoing macroeconomic uncertainty. Credit and other loss allowances for the quarter alone reached S$1.36 billion.
CEO Wee Ee Cheong saw his total remuneration for 2025 fall to S$12 million, down from S$15 million in 2024 and S$15.9 million in 2023. His base salary remained steady at S$1.44 million, but his bonus dropped to S$10.6 million from S$13.6 million the year before. Additional benefits also decreased slightly, totalling S$42,629 compared to S$46,944 in 2024. Despite the reduction, Wee's pay still places him among the higher-earning bank chiefs in Asia, though below HSBC's Noel Quinn (USD 10.8 million) and DBS's Piyush Gupta (USD 15.2 million).
The bank confirmed that 60 percent of Wee's variable pay will be deferred over the next three years, with 40 percent paid in cash and the remainder in share-linked units. In a statement, Wee emphasised UOB's commitment to supporting customers through tougher conditions while continuing investments in people, technology, and capabilities.
Looking ahead, UOB remains focused on expanding its ASEAN trade banking franchise, growing its consumer business, and ensuring sustainable long-term returns.
The drop in profits and executive pay reflects UOB's cautious approach amid economic uncertainty. With a strategy centred on regional trade, consumer growth, and deferred compensation for leadership, the bank aims to balance short-term challenges with long-term stability. The next few years will test whether these measures strengthen its position in the ASEAN market.
