UOB Share Price and Stock Investing Info | Focus on Singapore Stock Market Today
What is UOB?
UOB is one of the larger banks in Singapore and the region. Its name is an acronym for United Overseas Bank.
UOB history and operations
UOB is one of the oldest banks in the country. It has been around since August 1935 when it was founded by Wee Kheng Chiang. The early start in the banking industry has allowed it to tap into many growth opportunities over the years and gained a lot of expertise on the banking industry, thus reflecting on the banking company’s current position as one of the biggest banks in Asia. (Source: uobgroup.com)
Its lengthy presence in the industry also allowed the bank to expand its list of products and services to include corporate banking, private banking, corporate finance and investment banking. It also deals with finance areas such treasury services, capital markets activities, stockbroking services, insurance, venture capital management, asset management and futures management.
UOB has its headquarters in Singapore but it also operates in multiple countries including China, Thailand, Malaysia and Indonesia. It is currently one of the leading banks in Asia, in terms of market share and operations thanks to key acquisitions that have strengthened the company’s portfolio over the years. The bank has its operations in 19 countries in total, and 500 offices. Some of them are in North America and Western Europe.
UOB attributes its strong performance to a variety of factors and good corporate governance is arguably one of the most important aspects. This is the same case with UOB considering its robust management team which consists of industry professionals, where most of them have decades of experience in the banking industry. Here is a list containing the company’s current management team.
- Wee Ee Cheong- CEO and deputy chairman.
- Leslie Foo Chek Shen- Head of group global markets.
- Chan Kok Seong- Chief Risk Officer.
- Lee Wai Fai- Chief Financial Officer.
- Frederick Chin Voon Fat- Head of wholesale banking.
- Federico Burgoni- head of strategy and transformation.
- Susan Hwee Wai Cheng- Head of technology and operations.
- Eddie Khoo Boo Jin- head of retail.
- Peter Foo Moo Tan- CEO and president of UOB China.
- Dean Tong Chee Kion- head of human resources.
- Kevin Lam Sai Yoke- President and director of PT Bank UOB Indonesia.
- Wong Kim Choong- CEO of UOB Malaysia.
- Ian Wong Wah Yan- Head of strategy and international management.
- Daniel Ng Ming Thiam – Chief auditor.
- Christine Yeung See Ming (Mrs Christine Ip)- CEO of UOB Greater China and UOB Hong Kong.
- Victor Ngo- head of compliance.
- Janet Young Yoke Mun- head of digitalization and group channels.
- Joyce SIA Ming Kuang- Head of the legal and secretariat division.
- Tan Choon Hin- CEO and president of UOB Thailand.
UOB share price and performance
UOB shares are publicly traded on the SGX under the ticker U11. UOB share price ended the latest trading session on Friday at 23.44 SGD with a market cap of 39.299 billion SGD. The stock’s current 52-week range is 17.28 SGD on the lower end and 26.38 on the upper end of the price spectrum. The stock was in the red in January 2021 as the share price dropped from a high of 24.20 SGD in the second week of the month. The stock price kicked off February on some bullish momentum which pushed up the price from a low of 23.23 SGD. (Source: finance.yahoo.com)
A look at UOB share price performance in the last 12 months also indicates that it is still trading below its pre-COVID19 price levels. The stock traded above 26 SGD in the second week of February 2020 before the pandemic allowed the bears to take over, pushing down the price to levels previously reached in 2016. The bulls regained some positive momentum in the fourth quarter of 2020 which is around the same time that the financial markets started to experience a notable recovery. (Source: Zuuonline.sg)
Although the share price is close to its pre-COVID price levels, it is still notably some ways below its all-time high of 30.14 SGD that it achieved in April 2018. The stock might still have a lot of room for growth especially if the company taps into more growth opportunities as industries recover.
UOB dividend policy
UOB has a trailing 12-month earnings per share of 1.88 SGD and TTM PE ration of 12.54 SGD. The EPS as of February 8, 2021 is 2.227 SGD and divided is 0.940 SGD. The dividend yield was set at 3.888%. The bank has maintained some consistency as far as dividend payouts are concerned, especially in the last 3 or four years.
The bank announced a dividend of 0.95 SGD in August 2018, 1 SGD in May 2019, 1.05 in August 2019, 1.1 SGD in May and June 2020 and 0.94 SGD in August 2020. The last three dividend announcement highlight a slight drop which is consistent with the prevailing difficult market and economic conditions that took place in 2020. (Source: Investing.com)
The fact that the company still paid out dividends last year highlights its strong financial and corporate position. It is also an indicator of the bank’s ability to overcome challenges and remain profitable, while also maintaining its strong resolve to continue generating value for its investors.
UOB performance outlook
UOB’s strong presence in multiple high-growth markets, extensive areas of focus and strong management underscore the company’s good position as far as leveraging growth is concerned. However, there are other factors to consider that might influence the company’s performance. For example, the year 2020 was proof of the level of uncertainty that may occur in the markets, making it difficult to predict future performance even if a company has strong fundamentals.
External factors such as market changes also come into play. For example, the banking industry has transformed drastically over the past few decades. Those that are unable to keep up with the change become obsolete. Fortunately, UOB has the right leadership in place to help navigate such market changes. UOB is still one of the top stocks that investors should observe. (Source: Zuuonline.sg)