Overseas Union Bank Limited

Overseas Union Bank (previously known as OUB) was founded in 1947 in Singapore by Lien Ying Chow. It began operations in February 1949 and by the 1980s had grown into one of Singapore’s “Big Four” local banks.

In 2001, OUB was acquired by United Overseas Bank (UOB) in a SGD$10 billion takeover deal.

Timeline

In its early years, OUB found its niche in trade financing, especially for businesses importing rice from the region. OUB formed ties with Thai banks and rice exporters, and almost all Thai banks maintained a Singapore dollar account with OUB. Up to the mid-1950s, OUB financed around 80% of the rice imports into Singapore.

While there had been some doubts over the viability of OUB at its inception, by the end of its third year the bank was able to declare a dividend of 5% to its shareholders. Such success was previously unheard of in the Singapore banking industry. Eight years after opening, OUB embarked on an expansion phase, opening new branches in Singapore as well as Malacca, Penang, Kuala Lumpur and Hong Kong.

In 1964, Lien sought to enter the hotel industry, with a dream of what later became the Mandarin Singapore Hotel. OUB general manager Chi Owyang felt that the bank should not bear the potential risks of the project, and a separate company, Overseas Union Enterprise (OUE), was established. OUB and OUE held cross shareholdings. By 1968, OUB had deposits of over S$300 million and 32 branches. Lien had taken over as chairman by this time, while Owyang had retired.

In the 1960s, the international focus continued with new OUB branches in Tokyo and London.

In 1972, OUB became the first Singapore bank to open in New York.