UOB: Optimistic about the growth prospects of the Hong Kong market and will step up efforts to expand private banking and wealth management businesses in the future

The Zhitong Finance App learned that due to continued capital inflows and the positive benefits of rising interest rates on debt management, the bank will also step up efforts to expand private banking and wealth management services in the future due to continued capital inflows and the positive benefits of rising interest rates on debt management, as well as its unique advantage as a business contact between the Mainland and ASEAN.

Regarding the asset quality of the bank's Hong Kong Commercial Real Estate (CRE) credit risk, he pointed out that although the valuation of related real estate has declined quite a bit in recent years, the bank does not require immediate early repayment from borrowers. The vast majority of relevant customers are also willing to continue operating, and the bank will negotiate debt arrangements with customers.

Recently, banks have been auctioned off from time to time in the market. Tung Hing-yin said that he hopes this positive trend will continue after seeing similar transactions, especially the increase in leasing listings in the Central District. However, given that interest rate trends and the geopolitics of China and the US still remain uncertain, “the worst moment for commercial real estate in Hong Kong is over” at this stage.

However, Tung Hing-yin reiterated that UOB has been deeply involved in Hong Kong for decades and has continued to operate in good and bad times. In terms of revenue, Hong Kong has always ranked 2nd and 3rd for the Group outside of the Singapore market. Hong Kong and Mainland revenue accounts for about 10% of the Group's revenue, so Hong Kong's commercial real estate credit risk will not have a significant impact on the Group.

As to how much real estate-related loans currently account for UOB (Hong Kong) loans, whether the data showed a decline of more than 40% in June last year, and the latest non-performing rate and credit impairment of related loans, he said that since the Group will announce results for the second quarter in early August, there is no comment at this stage.

In addition, UOB has also set a goal of increasing Hong Kong's asset management scale (AUM) and wealth business revenue by a compound of 5 times compared to current levels by 2030. Chao Man-yiu, Governor and Managing Director of UOB Private Bank, anticipates that the Hong Kong Private Bank Account Manager (RM) team will increase from about 20 to 60 at that time.