UOB expects 40% increase in assets under management to Rm22bil

KUALA LUMPUR: United Overseas Bank (M) Bhd (UOB) expects to see a 40% increase in assets under management (AUM) to Rm22bil, contributed by its privileged banking segment, within one year.

“We are looking at our enhanced Privilege Banking contributing a 40% increase in assets under management within one year, with an increase of 5,000 clients,” said UOB chief executive officer Chan Kok Seong.

The bank currently has 22,000 privilege banking clients and manages Rm16bil. The number of high net worth individuals in Malaysia is expected to double from 32,000 to 68,000 by 2015, with their net worth also expected to increase from Rm430bil to Rm997bil.

Chan said that UOB saw this insight as a need to review and ensure the relevancy of its services to their privilege banking clients.

At the launch of the bank’s enhanced privilege banking yesterday, Chan also said that the client AUM entry level for the service had been raised.

Managing director and country head, personal financial services Kevin Lam said: “This enhanced platform will service the wealth management needs of affluent individuals with more than RM500,000 in AUM, an increase from the RM300,000 threshold.”

The enhanced service would include a specialist advisory service that seeks to evaluate clients’ financial goals, assess their risk profiles and help them diversify their assets accordingly.

UOB’S privilege banking clients will have two more information services: UOB Privilege Insights that provides financial and investment reports on local and global markets, and UOB Privilege Conversations that will hold a series of exclusive dialogues, events and seminars.

We are looking at our enhanced Privilege Banking contributing a 40% increase in assets under management within one year. — CHAN KOK SEONG