Over 1,800 shareholders attended OCBC’s annual general meeting on April 16 to raise concerns about dividend payouts, while United Overseas Bank held its AGM the following day with similar shareholder questions on capital returns and regional exposure. OCBC chairman Andrew Lee defended the bank’s dividend policy citing global economic risks, while UOB leadership discussed the bank’s ASEAN expansion strategy.
OCBC Annual General Meeting
At OCBC’s April 16 meeting at Sands Expo and Convention Centre, one shareholder questioned why OCBC could not achieve a higher share price comparable to competitors UOB and DBS, and called the bank’s current dividend offerings “chicken sh*t.” Chairman Andrew Lee refuted this characterization.
Mr Lee highlighted that OCBC breached the $100 billion market capitalisation mark on April 2 as shares hit a record high, crossing the $22 mark per share for the first time. He noted that shareholders looking at total shareholder return over a five-year period would be up 2.5 times for every dollar invested, and over a 20-year period would be up 7.5 times.
“Of course, everyone wants a better share price, but this is also linked to our performance, and also the external world situation,” Mr Lee said.
Global Risks and Bank Preparedness
Mr Lee cited multiple global risks OCBC had been flagging since 2023, including the Ukraine war which disrupted food supply chains and contributed to global inflation surge, as well as US-China tensions impacting global trade flows. He noted that US President Donald Trump announced another round of tariffs in April 2025, and pointed to the Middle East conflict which has escalated since 2023, raising energy shock risks given that approximately 20 per cent of global oil, gas and chemicals flow through the disrupted Strait of Hormuz.
Mr Lee assured shareholders that OCBC’s exposure to the Middle East is “not very large”, with exposure standing around 2 to 3 per cent of its total loans. The bank is stress testing at different levels to determine immediate and indirect impacts on customers if the war causes stagflation.
Using OCBC’s logo—a sailing ship slicing through waves—as metaphor, Mr Lee said the bank had seen signs of an incoming storm as early as 2023 and had been preparing for events over the past three to four years. One key decision was to defer the redevelopment of OCBC Centre at 65 Chulia Street, which would have cost $5 billion. Of the $5 billion saved, half was paid to shareholders through dividends and deployed into share buybacks.
Dividend Policy and Capital Returns
Responding to multiple shareholders’ questions on dividends, Mr Lee said the bank signalled in February that it would return to its 50 per cent payout policy after completing the $2.5 billion capital redistribution plan.
“What does it mean in terms of the shift? We are reserving the provisions necessary if we need to sail into a storm,” he said.
The board recommended a final ordinary dividend of 42 cents per share for 2025 and a special dividend of 16 cents per share, amounting to 10 per cent of the group’s 2025 net profit. In total, 2025 dividends will be 99 cents per share, slightly lower than the $1.01 paid out in 2024 but higher than the 82 cents paid in 2023 and 53 cents in 2021. OCBC is aiming to finish paying out the remaining $800 million of its $2.5 billion capital return plan by financial year 2026.
Great Eastern and Future Strategy
Mr Lee addressed OCBC’s failed bid to take Great Eastern private over the past two years, describing it as like “taking in cargo that fits in nicely into the ship” in line with the bank’s aim to be an integrated financial services group. When asked if there would be a third chance to vote on Great Eastern, Mr Lee said: “You have no third chance, or you have missed your chance. But there is the open market where you can buy and sell Great Eastern shares, and that’s where we stand.”
Mr Lee noted that OCBC’s recent performance has been “quite good”, with profit of around $1.2 billion, of which OCBC has a near 94 per cent stake.
Group chief executive Tan Teck Long, speaking at his first AGM, said the bank still sees a growing Asia despite the globally complex and uncertain environment. “Trade and investment flows in Asia are still on the rise. There are also similar mega trends such as digitisation and AI, sustainability and changing demographics, including an aging population in Singapore,” he said. OCBC will continue to invest in ASEAN domestic markets like Indonesia and Malaysia, and its twin hubs of Singapore and Hong Kong.
OCBC shares closed flat at $22.72 on April 17.
United Overseas Bank Annual General Meeting
UOB held its AGM on April 17, the last of Singapore’s three local banks to hold its meeting. DBS Group held its AGM earlier on March 31.
Shareholders at UOB’s AGM raised similar concerns to those at OCBC, including dividend payouts and the bank’s exposure to the Middle East. When asked whether UOB would set aside provisions for small and medium-sized enterprise (SME) clients affected by the conflict, chief executive Wee Ee Cheong said: “I hope not,” but added that the bank’s balance sheet is strong enough and it would step in to provide support if needed.
ASEAN Expansion and Capital Strategy
On UOB’s strategy in ASEAN, Mr Wee said the bank’s $4.9 billion acquisition of Citigroup’s consumer banking businesses in Indonesia, Malaysia, Thailand and Vietnam, first announced in 2022, is now “paying off”. The deal has doubled UOB’s customer base across the four markets.
“We must continue to invest in infrastructure to capture customers,” Mr Wee added, noting that ASEAN markets are diverse, with differing languages and customer needs. He reiterated the importance of running the bank “with discipline” for its long-term growth.
“We remain committed to returning $3 billion of surplus capital from 2025 to 2027, and this reflects confidence in our balance sheets, liquidity position and our long-term strategy,” he said.
Shareholders also asked whether UOB would consider offering scrip dividends—where investors can opt to receive shares instead of cash payouts. Chief financial officer Leong Yung Chee said the bank last offered scrip dividends in 2020 and has since stopped the practice. UOB instead returned $3 billion to shareholders in February 2025 through a mix of share buybacks and special dividends.
Mr Leong noted that decisions on capital returns, including buybacks, scrip dividends or bonus issues, are part of a broader capital management strategy that takes into account shareholder returns, the bank’s long-term growth needs and the importance of maintaining a sustainable balance sheet.
Director Fees and Governance
Among the resolutions passed was the approval of non-executive directors’ fees amounting to around $4.5 million, which was 25.3 per cent higher than in 2024. This drew several questions from shareholders before the vote was called.
One shareholder questioned if there were criteria like key performance indicators that would determine the directors’ fees, asking: “Is it better to give them lesser so that you can give us shareholders more dividends?”
Ms Tracey Woon, independent director and chairman of UOB’s remuneration and human capital committee, said that the fees were calculated based on the prevailing market rate, and having the right fee structure would allow the bank to “attract the right board members” to look after shareholders’ interests.
In response, the shareholder noted that the bank could be overpaying for directors who do not perform up to expectations, and it was critical that the bank hired the “right talent”.
Shares of UOB closed 0.3 per cent lower on April 17 at $37.40.
