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UOB’s Q1 net profit up 5.4%, asset quality stable

SINGAPORE — United Overseas Bank (UOB) on Friday (April 28) reported a 5.4 per cent rise in first-quarter net profit, boosted by higher net interest income and trading income.

Reuters file photo

Reuters file photo

SINGAPORE — United Overseas Bank (UOB) on Friday (April 28) reported a 5.4 per cent rise in first-quarter net profit, boosted by higher net interest income and trading income.

The smallest of Singapore’s Big Three banks is the first to report results for the sector, which has been hobbled by debt payment woes in the city-state’s oil services industry. It said its asset quality remained sound and its non-performing loans ratio was stable at 1.5 per cent.

Net profit rose to S$807 million in the January-March period from S$766 million in the corresponding quarter a year earlier, while the specific allowance on loans declined.

Total income grew 7.8 per cent year-on-year to S$2.12 billion. Net interest income rose 2.3 per cent to S$1.3 billion, driven by broad-based loan growth. Gross loans increased 9.4 per cent to S$229 billion while deposits were 1.9 per cent higher at S$260 billion as of March 31.

However, its net interest margin - a key measure of lending profitability — decreased 5 basis points to 1.73 per cent. The loan-to-deposit ratio remained healthy at 86.7 per cent while its fully-loaded Common Equity Tier 1 Capital Adequacy Ratio rose to 12.8 per cent.

“We started the year on a bright note with a steady growth trajectory from our core businesses. Against an unpredictable and volatile macro backdrop, we have maintained a resilient portfolio and strong balance sheet,” said UOB chief executive Wee Ee Cheong.

No dividend on ordinary shares has been declared for the first quarter. AGENCIES

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