UOB's leader Huang Yizong: UOB's market value to reach 90 billion in 10 years? AI predictions are too conservative | Lianhe Zaobao

Regarding whether UOB will establish a presence in the latest ASEAN member state, Timor-Leste, Huang Yizong said, "There are currently no plans, as we have not yet completed several major markets (Malaysia, Thailand, Indonesia, Vietnam)." (Photo by Xiao Ziwei) Recently, Huang Yizong, the third-generation leader of UOB, posed a forward-looking question to artificial intelligence: What will UOB's market value be in 10 years? This year marks the 90th anniversary of UOB, and in 10 years, it will coincide with the centenary of this third-largest bank in Singapore. Relative to the current market value of SGD 57.5 billion, AI predicts that UOB's market value will be between SGD 90 billion and SGD 100 billion. Regarding this figure, UOB's Vice Chairman and President Huang Yizong commented: "It's too conservative!" In a recent interview with Lianhe Zaobao, he said, "This figure does not take into account the growth in Southeast Asia, nor does it consider geopolitical risks. However, it is a good parameter." As of the end of last year, UOB's market share of Singapore dollar deposits in Singapore was approximately 21%, and the market share of Singapore dollar loans was about 25%. The bank aims to accelerate business growth in Southeast Asia, maintaining a 50% revenue share from Singapore while increasing the revenue share from the Southeast Asian market to 30% next year. Southeast Asia is an Economic Sweet Spot Against the backdrop of a reshaping global economic system and rising trade barriers, Huang Yizong believes that many businesses are being forced to relocate, and Southeast Asia possesses strong attractiveness, making it the current "sweet spot." With a solid foundation and network established in this region, UOB's prospects can rise accordingly. In Malaysia, UOB is the largest foreign bank, and in his view, there is still significant growth potential for UOB there. UOB's credit card data shows that Malaysia is the largest overseas spending destination for Singapore residents, with half of that spending occurring in Johor Bahru. "This is good for personal consumption, but it may put pressure on Singapore retailers, who need to find a balance." Huang Yizong explained that in the Johor-Singapore Economic Special Zone, UOB has seven branches, which can help Singaporean companies expand into the local market, allowing them to operate in both Singapore and Malaysia, "which may be the best for customers." If One Worries Too Much, Nothing Can Be Achieved He cautioned that if the development of the special zone progresses too quickly, small and medium-sized enterprises and some retail sectors in Singapore may be affected, and the entire process must be gradual. "However, if we worry too much, we won't be able to accomplish anything." He also believes that Singapore's economy is currently undergoing transformation and needs some breakthroughs. "We must make the most of favorable timing and location, remain flexible, and not be too complacent, thinking we are the best. On the contrary, we need a sense of crisis; otherwise, many costs will be higher than others." Although the long-term prospects for the Southeast Asian market are promising, UOB's recent performance has been constrained. Last month, UOB announced a 72% year-on-year drop in net profit for the third quarter to SGD 400 million, below market expectations, while also announcing an additional provision of up to SGD 600 million, contrasting sharply with the profits of the other two Singapore banks that exceeded expectations UOB's stock price has fallen over 5% year-to-date. Believe that the dark clouds will eventually pass The market generally believes that this pre-provisioning is a shockwave for this earnings season. UOB explained that it is in response to some issues in the commercial real estate sectors of Greater China and the United States. Among them, UOB's non-performing loans in Greater China increased by 13% quarter-on-quarter. This exclusive interview was conducted on the eve of the earnings release. Regarding the ups and downs of business, Huang Yizong said, "The dark clouds will eventually pass; one must learn to hold on and let go without too much worry." He pointed out that the market situation this year is indeed unsatisfactory. The decline in interest rates affects bank profits, and UOB's exposure in Hong Kong, including local real estate, has also been impacted to some extent. However, Huang Yizong believes that the Hong Kong economy has the support of mainland China, and overall, there are not too many problems. Regarding UOB itself, he said, "UOB has sufficient profitability and reserves, so even if some bad debts occur, there is no need to worry." He mentioned that three years ago, UOB acquired Citibank's consumer banking operations in Indonesia, Malaysia, Thailand, and Vietnam for 4.9 billion, enhancing its profitability. "We have strong profitability. Even if we earned 100 before, earning 80 now is fine; we will continue to move forward." Huang Yizong believes that if the entire ASEAN region rises, UOB's prospects "are still good." Therefore, he thinks that the AI prediction of a market value of 90 billion in ten years is conservative because it does not take into account the growth of ASEAN. (Photo by Zhang Junjie) At the same time, UOB is also developing non-interest income businesses such as wealth management and private banking, attracting family offices from mainland China, Taiwan, Hong Kong, and the entire Southeast Asia. The bank's goal is to increase the non-interest income ratio to 37% of total income by next year. Successors are not something that can be decided today for tomorrow Here, Huang Yizong believes that UOB has certain advantages. "You know, everyone uses chopsticks. The bank is built on infrastructure and systems, and this cultural familiarity is also very important." "Today, if I were a foreign bank, it would be completely different; this familiarity would not be so obvious." On the other hand, with DBS Group's new president, Chen Shushan, taking over from Piyush Gupta in March this year; and OCBC Bank's president, Huang Bijuan, retiring at the end of this year, with group vice president Chen Delong taking over in January next year, the market is naturally paying attention to when UOB will update its leadership team. When discussing the handover and successors, 72-year-old Huang Yizong did not shy away. When a reporter asked, "You must be tired of this question," he responded that he was not, indicating that the successor would become clear in the coming years, but he admitted, "This person is not something you can have today and tomorrow." He believes that younger management also needs five to ten years of training. In terms of approach, internal selection is his first choice, as per UOB's corporate culture, this is the most prudent way, "unless there is completely no one internally, but if that's the case, it means I, as the president, have failed in my duties." A Perfect Combination of Old and New Ginseng Regarding the quality of candidates, Huang Yizong emphasized that the focus is not on individualism but rather on "this person must use their influence to impact the team and take responsibility. If the team is willing to follow him, then that is his success." In terms of corporate culture, continuously updating on a stable foundation while maintaining a family-like atmosphere and employee sense of belonging is equally important to Huang Yizong. "Many large companies may have a longer history than us, but after personnel changes, the philosophy will also change. Therefore, maintaining stability is very important." For example, in UOB's senior management, the turnover rate is quite low. He describes this as a "nice blend." "Some people have worked with us for 20 or 30 years, while others for 5 or 10 years; this combination is great. Relying entirely on the senior staff is not feasible, and relying solely on the young is also not feasible; a balance must be achieved." Having experienced many market fluctuations, Huang Yizong has become accustomed to volatility. He said, "The dark clouds will eventually pass; one must learn to hold on and let go without worrying too much." (Photo by Xiao Ziwei) As for whether a stable environment fosters groupthink, Huang Yizong humorously said, "The most important thing is that this cat must be able to catch mice. If it can't catch mice, discussing groupthink is meaningless." Managing a Bank is Like Cultivating a Potted Plant He does not deny that the company must continuously update and allow employees to try new things. "It's like a potted plant; every few years, you have to take it out and trim the roots. If the roots are too crowded, the potted plant will struggle to grow. This is a process of renewal." In the wave of artificial intelligence (AI), many companies have also been uprooted, leaving employees in turmoil. In response, Huang Yizong said, "You can't confidently say that AI won't lead to layoffs. It's not that black and white; the whole world is changing. But first, we must prepare our employees; that is our responsibility." Further Reading Abstract Technique "Cloud of the Unknown I" Wins UOB Painting Competition Grand Prize Group's Third Quarter Performance Declines 72% UOB President Huang Yizong Purchases 5.06 Million Yuan in Stocks Perhaps, for Huang Yizong, who has witnessed the Singapore banking industry transition from the "Seven Warring States" to the current "Three Kingdoms," enduring financial crises, interest rate cycles, pandemic shocks, and challenges of digitalization and technological transformation, watching UOB face new challenges is itself the best annotation. He said, "This year marks the 90th anniversary of UOB. It is quite remarkable and blessed to have weathered the storms to reach today." Missing Father Huang Zuyao, Family Often Gathers Deeply Connected When talking about his late father Huang Zuyao, Huang Yizong's tone reveals a sense of longing. As the second-generation leader of UOB, Huang Zuyao led the bank for over 50 years and passed away peacefully last February at the age of 95. Huang Yizong is the eldest son, with an older sister Huang Weiling, and younger brothers Huang Yichao, Huang Yilin, and sister Huang Weiqi. To commemorate Huang Zuyao's contributions to the university and education, Nanyang Business School renamed its building to "Huang Zuyao Building" this year, celebrating its 30th anniversary, and added a 12-meter long and 1.5-meter high commemorative mural. The mural features the old UOB building along the Singapore River and the current city skyline, reflecting Singapore's development. (File photo) Huang Yizong, who was interviewed entirely in Mandarin, said that after his father's passing, there is a shadow-like void left behind. "We worked together for over 40 years every day; his office was right across from mine, just a few steps away." "Having worked with him for so long, it was natural to consult him sometimes, even though I am confident in my own decisions. Suddenly, he is no longer here, and that opportunity is gone." According to past reports, Huang Zuyao firmly believed that frequent family gatherings would deepen relationships. While he was alive, four generations of the family would gather for dinner every week. To facilitate interaction among family members, Huang Zuyao arranged for his children to live very close to each other, with their homes separated only by a fence, making it convenient for the whole family to visit and interact. Elderly Mother Sometimes Asks Where Father Went Huang Yizong revealed that this family tradition continues. Now that his father is gone, he often takes his 96-year-old mother Zhuang Rongying to his home for meals. His mother is somewhat forgetful and sometimes asks where her father has gone. Was Huang Zuyao particularly strict with his eldest son Huang Yizong? He said no, his father had an open mind. As for himself, he joked, "You can tell by looking at me that I'm not that kind of person." He described himself as someone who rarely loses his temper, does not raise his voice to scold others, and may sometimes be impatient due to high efficiency demands, but generally forgets quickly. Shanghai "Base Camp" Must-Visit Every Year Few people know that Huang Yizong is a son-in-law of Shanghai, his wife Zhang Gongling is from Shanghai, and his mother-in-law is from Ningbo. In 2011, Huang Yizong attended a Lunar New Year event with his wife, where two little girls dressed as rabbits wished them a happy new year. (Archive photo) According to him, his wife was born in Singapore, educated in the United States, and is already a second or third generation Singaporean, but still has relatives in Shanghai. When he goes to Shanghai with his wife, he can even understand some Shanghainese. UOB's China headquarters is located in Shanghai, and Huang Yizong travels there two to three times a year for business. His wife often accompanies him if she has time. Regarding UOB's strategy in China, he said, "In China, we do not pursue scale and cannot compete with Bank of China. The focus is on market promotion, bringing Chinese clients to Southeast Asia." "Southeast Asian clients want to develop in China, and we can support them. We are familiar with that market, and our advantage in China lies in the connection." Grandson Asks About Bank's Net Interest Income Although he does not talk much about his family, Huang Yizong's face shows tenderness when he mentions his grandchildren. One day, his grandson, still in elementary school, said he wanted to see UOB's annual report and asked, "What is the bank's net interest income?" This surprised him quite a bit. In June of this year, UOB celebrated its 90th anniversary and Singapore's 60th anniversary by transforming the 280-meter UOB Building at Raffles Place into a colorful canvas. A reporter happened to witness Huang Yizong and his elegantly poised wife Zhang Gongling, along with their grandson, enjoying this world's tallest light projection performance. In June of this year, the 280-meter UOB Building at Raffles Place was transformed into a colorful canvas, narrating the development history of Singapore and UOB. (Archive photo) However, Huang Yizong said he does not need to cultivate his grandchildren but rather wants to play with them. He does not want to force his grandchildren to inherit his legacy, telling them, "Your grandfather does this, so you must do it," as this would be counterproductive. They should be allowed to develop freely. "If they like to be painters, it is hard to force them to be musicians; there is no need to interfere or pressure them too much." Huang Yizong also encourages them to try more while they are young, suggesting that they do not need to be too focused on one thing, as sometimes people only discover what they truly like in middle age. Having once been a representative of the national tennis team, he uses his own example, saying that he played tennis all the time when he was young, but now it has lost its novelty In May this year, Minister for National Development Xu Fangda (first from left), Huang Yizong (middle), and Chairperson of the Urban Redevelopment Authority Wu Fengping (third from left) held hands in a silhouette to awaken light and melody, unveiling "Illuminate Singapore 2025." (Provided by UOB) "If you only focus on doing one thing at the beginning, later you might feel like you don't want to do it anymore and want to learn something else. Of course, some people may not give up, but I think trying new things is very natural." Currently Enjoying Pilates Today, Huang Yizong's favorite sport is Pilates. "After learning for 20 or 30 years, I initially found it boring. Now I think it's quite good for body flexibility. At a certain age, many things you didn't want to do when you were young, you might want to try." In his career, he has remained consistent. Since joining UOB in 1979 and taking over as president in 2007, Huang Yizong has led the bank for 18 years, accompanying UOB through most of its history since its establishment. When asked how he managed to do it, Huang Yizong said it was a responsibility. He stated, "The main thing is to 'seek progress while maintaining stability.' We have experienced storms over three generations, and if young people can inherit this steadiness, it would be enough, just like how we take care of potted plants." Moreover, "There are many things that can never be fully learned. I have also learned a lot from my colleagues." Understanding and Appreciating Art to Nourish the Soul In addition to his career, Huang Yizong's fondness for art remains unchanged. He said he considers himself "relatively tasteful" when it comes to things that are visually appealing. For example, keeping fish, drinking tea, collecting antiques and watches are all part of his life. Coincidentally, UOB also has a deep connection with art. Upon entering the UOB building at Raffles Place, every corner is adorned with potted plants, paintings, sculptures, and other artworks. The bank's annual painting competition, which started in 1982, is the longest-running art competition in Singapore's history and has expanded to Indonesia, Malaysia, Thailand, and Vietnam, discovering over 1,000 regional artists, including 9 Singapore Cultural Award winners. In January last year, the National Gallery Singapore signed a memorandum of understanding with UOB to extend their partnership for another five years, continuing to co-create the Southeast Asian art narrative. On that day, Huang Yizong (first from right) visited the UOB Southeast Asia exhibition hall, as well as the exhibition space and film screening room renamed after UOB. (Archive photo) Persistently Supporting Regional Art for Over 40 Years Huang Yizong said that even if the event was not initiated by him, it has persisted for more than 40 years and has indirectly influenced him. He believes that the value of art should not be measured solely in monetary terms; sometimes what moves people is the innocence found in children's drawings. "Being an artist is a very lonely profession. If no one appreciates the work, it doesn't matter how well it's painted. When we display artists' works in the bank lobby, it gives them a sense of achievement." Currently, UOB has over 2,800 pieces of art in its collection, many of which were obtained through painting competitions. The bank also hires specialists to maintain and showcase this large collection, with about 70% exhibited and stored in Singapore. The display has another layer of significance. Huang Yizong stated that it is important to nourish the human spirit with art, as employees can calm down and focus on their work in such an environment. When asked if he would one day open his own art museum, he simply replied, "No, and there's no need. Some things don't necessarily have to be owned."