UOB to hire 2,000 this year

UOB to hire 2,000 this year
By Rachel Kelly | Posted: 25 February 2011 2234 hrs

SINGAPORE: Singapore lender United Overseas Bank (UOB) is planning to hire some 2,000 staff in Singapore and the region this year.

The bank said it would mainly be targeting sales and branch network support growth.

The bank is looking to triple its assets under management -- currently at S$40 billion for individuals with assets of $200,000 and above -- by 2015.

The lender is also targeting 50 per cent of its wealth management business to come from the region - up from the current 20 per cent.

UOB said it plans to expand its network of wealth management centres from the current 29 to 64, and profit contributions from mass affluent and high net-worth individuals to grow from 35 per cent to 50 per cent by 2015.

Analysts said that they expect Singapore's lenders to look more to the region for growth.

Improved economic conditions lifted the earnings of Singapore's three lenders in 2010.

Fitch Ratings' Financial Institution director Alfred Chan said UOB, DBS and OCBC reported an improved earnings year-on-year.

"This, I believe, is in line with the broader economic trend. There wasn't any unexpected results that came out of this 2010 results.

"I think what is clear is that asset quality pressures that was clearly an issue in the mid of the recession has clearly eased since mid-2009 with the sharp rebound in exports and GDP.

"That's shown in the strong GDP numbers and that flowed in 2010 and banks being the organ of the economy mirrors that kind of economy".

DBS's profit for the full-year grew 28 per cent, while OCBC's grew 15 per cent.

UOB reported on-year growth of 42 per cent and UOB, the last of the three banks to report its earnings, is looking to expand aggressively overseas.

UOB deputy chairman and CEO Wee Ee Cheong said: "I'm happy with the result but I think we can do a lot more.

"What we are doing in the region is to integrate our regional branches to create a common platform and we are transforming a collection of banks into a fully integrated region of banks.

"That is important for us because it is win -in for both customer as well as bank and I believe the next few years, the region is the one that will generate a lot of potential benefit for us".

While 2010 was a good year for Singapore's three lenders, analysts said they expect in 2011, property curbs in the Singapore market to limit growth for the bank's loan portfolio.

However, UOB said it expects its loan book to grow in the mid teens for 2011.

Analysts said with Singapore's saturated market, the regional approach is the way to go.

Fitch Rating's Mr Chan said: "I think the emphasis will change somewhat - Singapore is a very mature banking system, so there is a lot of competition.

"Banks may choose to grow a bit more outside of Singapore where credit opportunities are more, particularity Indonesia because it is a fast growing market and because of the fast growing population there, there is a lot of potential.

"But risks are also much higher in comparison to Singapore, so banks have to manage those carefully".

With consumers also seeking to tap into the growth in other emerging economies such as China, UOB is the latest local bank to announce plans to offer products denominated in the Chinese yuan to retail investors, from the first week in March.

-CNA/wk

- wong chee tat :)