Chung Khiaw Bank
| Company type | Subsidiary |
|---|---|
| Industry | Banking, Financial services |
| Founded | 1950 |
| Founder | Aw Boon Haw |
| Defunct | 1999 |
| Fate | Fully merged into United Overseas Bank |
| Headquarters | Singapore , Singapore |
| Parent | United Overseas Bank |
Chung Khiaw Bank Limited was a Singapore-based financial institution established by the affluent entrepreneur Aw Boon Haw. It subsequently became a subsidiary of United Overseas Bank (UOB) following acquisitions during 1971–72. Prior to UOB’s takeover, a portion of Chung Khiaw Bank’s shares was transferred in 1969 to the publicly listed entity Haw Par Brothers International. This occurred before UOB acquired the bank in 1971 after the parent company was taken over by Slater Walker. The complete integration of Chung Khiaw Bank into UOB was finalized in 1999.
The "Chung Khiaw Bank" brand continued operating as a UOB subsidiary within Malaysia until 1997, at which point UOB (Malaysia) merged with Chung Khiaw Bank (Malaysia).
As of 1971, Chung Khiaw Bank maintained two branches in Hong Kong; these were assimilated into UOB’s operations by 1999.
History
Chung Khiaw Bank originated as a family-run enterprise located at 59 Robinson Road, Singapore. The bank’s founding chairman was millionaire Aw Boon Haw, famed for his ventures including "Star Newspapers" and "Tiger Balm". Upon his passing, leadership transitioned first to Ko Teck Kin and subsequently to Aw Cheng Chye, Aw Boon Haw’s nephew and son of Aw Boon Par. The inaugural managing director and president was Lee Chee Shan, who was married to Aw Cheng Hu (daughter of Aw Boon Par) and reportedly distantly related to both Aw Boon Haw and Aw Boon Par. Lee maintained his role following Aw Boon Haw’s demise.
In 1969, Aw Cheng Chye undertook the public listing of most assets held by the family-controlled Haw Par Brothers (Private) Limited by forming Haw Par Brothers International through an initial public offering. This included its equity interest in Chung Khiaw Bank. By June 1971, the listed company was acquired by Slater Walker. Subsequently, the 49.8% stake in Chung Khiaw Bank owned by this listed entity was sold to local competitor United Overseas Bank (UOB) for S$22 million. In July 1971, Lee Chee Shan retired from his position as "lifetime president," receiving a compensation package of S$750,000; prior to retirement, his monthly remuneration was S$35,500.
In 1972, Chung Khiaw Bank and UOB unveiled a joint corporate logo. Certain members of the Aw family, including Aw It Haw, continued as directors alongside representatives affiliated with UOB. Aw Cheng Chye remained on the board until his death in August 1971. By June 1972, UOB proposed acquiring the remaining outstanding shares of Chung Khiaw Bank through a share exchange at a one-to-one ratio. This proposal faced resistance from minority shareholders who raised concerns regarding valuation fairness and potential conflicts of interest. Nonetheless, by mid-1973, UOB had increased its ownership by an additional 28.7%.
In 1974, unfounded rumors about Chung Khiaw Bank’s financial stability provoked a run on its Singapore branches, which contributed to the establishment of deposit insurance schemes in Singapore.
Chung Khiaw Bank became fully owned by UOB in February 1988 when UOB issued 15.2 million new shares to acquire the remaining 17.1 million shares (representing 17.1%) of Chung Khiaw Bank stock. At that time, Aw It Haw continued serving as a director.
By 1997, the Malaysian operations of Chung Khiaw Bank were merged with those of UOB Malaysia. Two years later, in 1999, Chung Khiaw Bank was completely absorbed into UOB’s branch network.