Billionaire Wee Cho Yaw’s UOB Profit Jumps As Bank Poised To Takeover Citibank Franchise In Southeast Asia

United Overseas Bank (UOB)—controlled by billionaire Wee Cho Yaw—on Friday reported record third-quarter net profit, bolstered by increased lending income, as Singapore’s third-largest lender by market value gears up to complete its acquisition of Citibank’s consumer banking businesses across four Southeast Asian markets.

Net profit rose to S$1.4 billion ($994 million) in the third quarter, a 34% jump compared to the previous year. Net interest income surged 39% to S$2.2 billion on higher net interest margins and loan growth, UOB said. The bank’s shares jumped as much as 4.8% in Singapore morning trade.

Despite rising interest rates, UOB said its mortgage business remained steady during the quarter, reflecting the robust demand in the Singapore housing market. Private home prices rose 3.8% in the three months ended September compared to the previous three months amid strong sales of newly launched condominium projects, the latest data from the Urban Redevelopment Authority showed.

“While uncertainties continue to cloud the global economy, we expect the ASEAN economies to show resilience and avoid a recession.” Wee Ee Chong, deputy chairman and CEO of UOB, said in a statement.

Reflecting Wee’s optimism, UOB said it’s poised to complete the acquisition of Citibank’s consumer banking franchises in Malaysia and Thailand next month, while the takeover of the U.S. bank’s operations in Indonesia and Vietnam will be wrapped up by the end of 2023. First announced in January, the S$4.9 billion deal is UOB’s most aggressive expansion, doubling the Singapore bank’s customer base to more than 5 million across Southeast Asia.

UOB was cofounded in 1935 by Wee Cho Yaw’s father Wee Khiang Cheng as United Chinese Bank. Apart from his controlling interest in the bank, Wee, 93, holds significant stakes in real estate companies including UOL Group and Kheng Leong. With a net worth of $6.8 billion, he was ranked No. 9 on the list of Singapore’s 50 Richest that was published in September.