The group has had several reported mis-selling incidents in the past two years, which raises fair dealing and governance risks, the report said. Five UOB personal bankers were jailed or sanctioned - or both - between 2018 and 2019 on separate cases of mis-selling and cheating.
About 36 per cent of UOB's corporate loans at the end of 2019 were provided to businesses classified as SMEs. These risks are elevated as small business owners emerge from Covid-19 loan moratoriums. Some 16 per cent of UOB's loans are currently under moratoriums, a bulk of which are set to expire between the third and fourth quarters this year. This situation may increase the risks of non-performing loans in the near term.