* Chairman says comfortable with Tier-1
* Dividend cut aimed at preserving capital
* Financial crisis may drag on for 1-2 years
* No plans to retire, says Wee, 79
(Adds chairman comment, share price)
SINGAPORE, April 29 (Reuters) - United Overseas Bank <UOBH.SI>, Singapore's second-biggest lender, is comfortable with its capital level and has no plans for a rights issue, its chairman said on Wednesday.
The comments are likely to put to rest market speculation that UOB, which has the lowest Tier-1 capital adequacy ratio of the city-state's three local banks, may have to raise more capital.
"We are comfortable," Chairman Wee Cho Yaw told a shareholders meeting. "I don't think we need any rights issue for the time being."
UOB had a Tier-1 ratio of 10.9 percent at end-2008 compared to DBS Group's <DBSM.SI> 12.2 percent and Oversea-Chinese Banking Corp's <OCBC.SI> 14.9 percent.
Wee, whose family controls Southeast Asia's second-biggest bank, said he was still concerned about the outlook for the global economy, especially the United States.
"I am still pessimistic," he said, adding the financial crisis may last another 1-2 years.
He said UOB was careful and selective on lending and recently cut its dividend to preserve capital.
UOB's loans grew at 7.7 percent in the fourth quarter, slowing from 18 percent growth in the third quarter. The bank reports first-quarter results on May 6.
Wee said UOB does not have toxic assets on its books, but could see a rise in bad loans because of weak economies, with Singapore facing its worst recession. He said the level of non-performing loans would, however, remain manageable. UOB had an NPL ratio of 2 percent.
Wee, 79, whose father founded the bank, said he has no plans to retire. His son Wee Ee Cheong is chief executive,
"In my lifetime, I don't want to see this bank in trouble," Wee said. "I can't retire. Once I retire, I'll die."
