UOB proposes special dividend, share buyback programme as it unveils long-awaited capital return plans

UOB’s board has announced a S$3 billion package to distribute surplus capital over the next three years, as it aims to bring down excess capital.

The lender is proposing a special dividend of S$0.50 per share – paying out S$800 million of UOB’s surplus capital – over two tranches in 2025.

It also introduced a S$2 billion share buyback programme, where over the next three years shares will be acquired from the open market and cancelled.

“Our disciplined approach of pursuing long-term growth with stability has served us well, and we are confident of enhancing shareholders’ value in the years to come,” said UOB chief executive Wee Ee Cheong, at the lender’s fourth-quarter results briefing on Wednesday (Feb 19).

The package is a long-awaited move from UOB. During its third-quarter results briefing in November 2024, Wee said the bank was open to investing its excess capital in growth, or returning it to shareholders, whether through share buybacks or more dividends.