UNITED Overseas Bank (UOB), Singapore's second-biggest lender, is planning a restructuring process to cut costs - but it is understood no jobs will be lost.
In its summary financial statements - released yesterday ahead of its annual report due out later this month - the bank indicated that it wished to improve efficiencies and cut operating costs.
'In this turbulent environment, the group will steer a cautious course,' it said in the report.
The Straits Times understands that there will be no job cuts and the ongoing restructuring exercise involves tweaking its technological operations.
A UOB spokesman confirmed yesterday that it is 'integrating technology and operations to enhance efficiency and effectiveness across the region to better serve its customers'.
UOB has already implemented a wage freeze across the organisation.
Kim Eng Research analyst Pauline Lee said that UOB's cost-to-income ratio of below 40 per cent is the lowest when compared with peers OCBC Bank and DBS Group Holdings.
'It is fair for a company to look at cost savings during a difficult operating environment,' she said. 'Maybe UOB's interest is not to go to the market to raise funds, so this (restructuring) is one avenue for it to conserve cash.'
For months, market talk has been that UOB might announce a rights issue to raise capital.
But its deputy chairman and chief executive, Mr Wee Ee Cheong, during the bank's fourth-quarter results briefing in February, quashed the rumours and said it did not need to do so.
- The Straits Times
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