UOB (United Overseas Bank)

[¯|_(ツ)_/¯]

6May2021 UOB published it's 1Q21 performance 
7May2021 UOB published a Cybersecurity incident report in SGX
https://links.sgx.com/FileOpen/UOB-A2021...eID=665469

A few things that's notable.
1. UOB publish this Cybersecurity incident before it hit the press.  
This is rather un-usual as UOB decided to voluntarily release this info.

2. UOB attacker is using a rather common technique - Impersonation Scam.
As reader of VB.com already know, the attacker will just pretend to be a China policeman and request for certain Chinese nationals with Singapore-based accounts details such as:

• Name
  
• ID
  
• Mobile numbers
  
• Account balances (amount or more or less than a certain sum)
  

3. Unfortunately, UOB fall prey to the scam and had been deceived into disclosing these information.


What is important is to realise that this could happen to any person.  But, what is notable is, all these while, the Cyber attacks were focusing on individual account holder.  Whereas, this time round, the attacker had successfully penetrated a business - UOB.

Moving forward, we would expect more such announcements (from other businesses) as UOB had already opened the can of worms.

What would be important is the counter measures:

• disabling clients internet and mobile banking access;
  
• advising clients to reset digital access and how to protect from scams;
  
• monitoring of affected accounts;
  
• set online funds transfer SMS alert threshold;
  
• post scam notice on apps and home page; and
  
• post scam notice on social media channels.
  

Of course, for UOB staffs, additional Cybersecurity training especially on the social engineering and phishing too.

UOB pledge to continue to make every effort to work with affected customers and make every effort to work with them on keeping their accounts safe.

---

It's definitely no fault of UOB (or UOB staffs) as Cyberattack is rampage and the attackers are getting smarter and smarter everyday.

With the help of open source and increasing volatile economic conditions, Cyberattackers would be more persistent and creative to fish for their preys.

Singapore, being the leading financial center in SEA and Singaporean, being shielded from the impact of economy crisis would be an exciting pond to be fished.

Take care and stay safe, everyone.
 

[Bibi]

2. UOB attacker is using a rather common technique - Impersonation Scam.
As reader of VB.com already know, the attacker will just pretend to be a China policeman and request for certain Chinese nationals with Singapore-based accounts details such as:

• Name
  
• ID
  
• Mobile numbers
  
• Account balances (amount or more or less than a certain sum)
  

But even with above information can the hacker steal the money in the client balances? Are they able to clone a sim card based on the mobile number given and divert sms 2 FA to their cloned sim card?

[¯|_(ツ)_/¯]

Good questions. Why is there a need to clone the SIM card?

See an awareness video from OCBC.
These personal data would be kept by the Scammer in a centralised database...
and subjected to further exploitation for many many years to come.

It's very serious and hence the need to educate more Singaporean.

Gratitude.

[Bibi]

Good questions. Why is there a need to clone the SIM card?

Becos I believe all investors here will not give them any banking pw as in the video u uploaded. HP number yes. They can exploit for all they want but they wont get any pw from shrewd investors here.

[¯|_(ツ)_/¯]

 cute.
Different people different stroke.

We still need to do more public education to prevent these sort of things happening.
SPH, MediaCorp - POWER!!!

Gratitude.

[weijian]

The Jardines untangled their cross holdings few years back. Any chance for UOB to untangle theirs and unlock value?

Banker extraordinaire and takeover artist: Milestones from Wee Cho Yaw’s career

WEE Cho Yaw, arguably Singapore’s most prominent corporate and banking personality for decades, died at the age of 95 in the early hours of Saturday (Feb 3).

The banking titan led UOB – the bank founded by his father – for over 60 years as chief executive and chairman, building it into a domestic and regional financial powerhouse.

Under him, the bank’s network expanded from 75 to more than 500 branches and offices globally, and assets grew from S$2.8 billion to more than S$253 billion.

https://www.businesstimes.com.sg/compani...aws-career

[weijian]

Interesting to see the bankers in blue (UOB) following their competitors in red (DBS) in terms of how they are going to return surplus capital to shareholders.

In general, cash dividends is capital leaving the company and SBB (share buyback) is capital retained within the company. Capital leaving the company has the effect of reducing the share price while bolstering its shareholder's own capital (with the cash dividend), while capital retained within the company has the effect of increasing the share price while its shareholder's own capital remains unchanged.

DBS capital return (FY25 and onwards)
Cash dividends~5bil (60cents/year x 2.85bil shares)
SBB~3bil (started in 3Q24)

UOB capital return (FY25 and onwards)
Cash dividends~0.8bil
SBB~2bil

Both banks are starting to be less "Spore like" and following Western companies' strategy in the manner of returning capital to shareholders. And it seems like UOB is actually prioritizing a higher % of capital returns in the form of SBB at ~66% (2bil/3bil) while DBS' SBB portion of total capital returns is just at ~37% (3bil/8bil).

Will be interesting to see what the 3rd bank does when it announces its results in time to come.

UOB’s FY24 net profit rose 6% to record S$6.0 billion

As part of the Bank’s capital distribution strategy, the Board announced a S$3 billion package to distribute surplus capital over the next three years. The package comprises special dividends and share buybacks. A special dividend of 50 cents per ordinary share is recommended in 2025, distributing S$0.8 billion of UOB’s surplus capital. This is also to mark the Bank’s 90th anniversary. In addition, a new share buyback programme of S$2 billion has been introduced

https://links.sgx.com/FileOpen/FY24%20Ne...eID=833483

[weijian]

UOB and its affiliated brokerage firm UOB Kay Hian are the only local financial institutions caught serving at Fujian Gang. Were they unfortunate or simply because the other 2 local banks had better "internal controls"?

Billion-dollar money laundering case: MAS slaps 9 financial institutions with S$27.45 million in penalties

Credit Suisse received the highest composition penalty of S$5.8 million. The bank was acquired by fellow Swiss bank UBS in 2023.

UOB, UBS, UOB Kay Hian and Citibank received the next highest penalties.

Swiss bank Julius Baer, asset management firm Blue Ocean Invest, financial services firm Trident Trust Company and Liechtenstein’s LGT Bank were also penalised.

https://www.channelnewsasia.com/singapor...se-5220456

[weijian]

In general, mergers only come after a period of disruption/crisis and that was what happened in the regional ASEAN banks post AFC97. So right now, things are churning just fine with non-NIM income picking up the slack after NIM compression started to kick in. So there is definitely zero impetus for any sort of market consolidation, whether is it from a top down or bottom up basis. And before we talk about potential bank consolidation, shouldn't the cross winding structures between the various UOB-linked entities first have to unravel first?

On another note, OCBC is managed by "professional mgt" now but from the recent Great Eastern takeover, it seems like the Lee family is still very much in charge. So even if UOB eventually transits to a non Wee, the Wees will still be firmly in charge for many years to come.

Looking beyond looming CEO succession, should UOB potentially pursue a transformative merger?

Wee Ee Cheong, 73, has been CEO for over 19 years. He is also UOB’s deputy chairman. If he passes the CEO baton, the bank will likely appoint a non-Wee family member to succeed him. He took over from his father, the late Wee Cho Yaw, as the bank’s CEO in 2007. Before that, Wee Cho Yaw succeeded his father, the late Wee Kheng Chiang, as UOB’s chairman and CEO in 1974. Wee Kheng Chiang founded United Chinese Bank, which is now UOB, with partners in 1935.

Appointing a non-Wee family member as the bank’s CEO will be historic. However, the handing over of its executive leadership reins might be largely uneventful. Intriguingly, if regulators permit, could the trio of DBS, OCBC and UOB become a duo, with UOB joining hands with either DBS or OCBC? A possible tie-up between OCBC and UOB could create a formidable competitor to DBS, which is currently South-east Asia’s largest bank. The Wee family can be proud of leading UOB well for over nine decades and steering it through various economic and financial crises. Today, the bank is well-capitalised and has a strong franchise.

As the Wee family possibly retreats from executive leadership of UOB soon, the storied family might wish to think hard over whether to encourage the bank to pursue a transformative merger to boost competitiveness. A stronger UOB can be great for preserving and growing the family’s wealth over the long term. Ultimately, a merger which makes the 91-year-old bank more fighting fit can benefit the Wee family and its other shareholders.

https://www.businesstimes.com.sg/opinion...ive-merger

[specuvestor]

Singapore government had wanted to consolidate Singapore banks into 2 and Wee Cho Yaw fought hard and resisted. MAS even threw in the rule that banks cannot hold more than 10% of non-banking entity so the unwinding already started back then while others were eyeing whether DBS or OCBC could take over UOB as the fragile holdings unwound. DBS even tender offer for OUB and supposedly shocked a tearful Lien who had not been approached but only read about it in the news.

I doubt it will be "merged" / taken over in the life time of Wee Ee Cheong else his father will roll in the grave Then again Wee Cho Yaw was a fighter in the league of LKY while his son loves bonzai.