SINGAPORE – UOB chief executive Wee Ee Cheong’s salary rose as the bank’s full-year core earnings hit a new record in 2023, but it increased at a slower pace.

Mr Wee’s annual pay for the year came in at $15.9 million, a 12 per cent increase from the $14.2 million he earned in 2022.

His annual remuneration comprises a base salary of $1.2 million, unchanged from 2022, as well as a bonus of $14.7 million, benefits-in-kind and transport-related benefits amounting to $39,700.

In an annual report on March 21, Singapore’s third-largest bank noted that 60 per cent of Mr Wee’s variable pay is deferred, and will vest over the next three years.

Of the deferred variable pay, 40 per cent will be issued in deferred cash, while the remaining 60 per cent will be in the form of share-linked units.

The increase was smaller than the 30 per cent salary jump he had in 2022, when his pay of $14.2 million rose from $10.9 million the previous year.

Mr Wee’s pay overtakes that of Mr Piyush Gupta, CEO of Singapore’s largest bank DBS.

Mr Gupta was paid $11.2 million in 2023, DBS said on March 6. This was a drop of 27 per cent from the $15.4 million he brought home in 2022.

The 2023 variable compensation for the DBS CEO and other members of the group management committee was cut to hold them accountable for a series of digital disruptions in 2023.

At UOB, full-year core earnings grew 26 per cent to $6.1 billion because of strong income growth and a bigger customer franchise.

This marked the first time its profits crossed the $6 billion mark.

These earnings excluded one-off expenses from the integration of Citigroup’s consumer banking business in four South-east Asian markets.

Including these expenses, net profit for the full year rose 25 per cent to $5.7 billion.

Costs related to the integration are expected to largely taper off by mid-2024.

Mr Wee said in his bank’s annual report that the global economy faced uncertainties and challenges in 2023, with economic activity moderating on the back of slower demand in Europe and China.

“Looking ahead, uncertainties about US inflation and China’s growth will continue to linger while geopolitical tensions and political transitions could lead to another bumpy year globally,” he said.

“Growth in the Asean region is expected to remain strong due to domestic demand, moderating inflation and increased trade and investment flows,” Mr Wee said, adding that the bank is well placed to ride on the region’s growth.

With the acquisition of Citigroup’s consumer units in Indonesia, Malaysia, Thailand and Vietnam, UOB now has more than eight million retail customers across the region.

It integrated the new businesses in Malaysia and Indonesia with UOB’s platforms in 2023.

The Thailand business is expected to be integrated in the first half of 2024, while Vietnam will follow suit in 2025.

Credit card fees reached an all-time high in the fourth quarter of 2023, driven by contributions from the expanded regional franchise and robust consumer spending in the region.

“Ongoing cross-selling initiatives of UOB offerings to our newly acquired customers are expected to further enhance our revenue,” it said.

The bank also drew attention in 2023 when it announced that it was the official bank and pre-sale partner of pop star Taylor Swift’s The Eras Tour in Singapore, and the regional presenting sponsor for Ed Sheeran’s +-=÷x Tour in Indonesia, Malaysia, Singapore and Thailand.

It said: “We will do more to extend lifestyle offerings that meet the needs and aspirations of our customers.”