Here’s how UOB plans to grow its loans and ROE

The Singapore bank is relying on growth from its ASEAN 4 markets.

UOB is banking on contributions from its ASEAN businesses to raise its loans and returns over the next few years.

The Singapore-based bank guided for a single-digit loan growth for 2025, extending the 5.5% growth recorded in 2024.

In particular, management named three pillars as key to its loan growth: cross-border trade and investments within ASEAN, the digital economy, and green and renewable energy.

Notably, UOb signed a memorandum of understanding (MOU) with the Singapore Chinese Chamber of Commerce and Associated Chinese Chambers of Commerce of Malaysia to bolster cross-border collaboration and investment, focusing on Singapore, Malaysia and the Johor-Singapore Special Economic Zone, noted Jonathan Koh, analyst for UOB Kay Hian.

Management also targets a return on equity (ROE) of 14% by 2026 through increasing contributions from ASEAN 4 countries, namely Malaysia, Thailand, Vietnam and Indonesia.

UOB is seeking for 30% of total income to be from these four markets, whilst maintaining at least 50% in Singapore.