United Overseas Bank Stays Steady Amid Global Uncertainty

In a report released earlier this week, United Overseas Bank Ltd has revealed a stable first quarter performance, with net interest income growing 2% year-on-year to SGD 24 billion. While the bank’s net profit was lower than expected, with a 2% decline from the previous quarter, its asset quality remains a bright spot, with a non-performing loan ratio of 1.6%.

The bank’s management has expressed caution on the global economic outlook, citing US trade policies as a major concern. However, they remain optimistic about the long-term potential of Southeast Asia, a region that has been driving the bank’s growth in recent years.

One area where the bank has seen significant growth is in fee income, which has increased by 20% year-on-year. This growth is largely driven by record-high loan-related fees, as well as stable wealth management and credit card fees. The bank’s total income grew 4% year-on-year to SGD 36.57 billion, with a 6% year-on-year growth in loans, deposits and financing.

The bank’s management has emphasized the importance of cost management and asset quality improvement, with a 52.1% decline in expected credit loss provisions. This focus on cost management is a key area of attention for the bank, as it looks to maintain its stability in a rapidly changing global economic landscape.

Key Highlights

• Net interest income grew 2% year-on-year to SGD 24 billion
• Net profit declined 2% from the previous quarter
• Non-performing loan ratio remains stable at 1.6%
• Fee income grew 20% year-on-year, driven by record-high loan-related fees
• Total income grew 4% year-on-year to SGD 36.57 billion
• Loans, deposits and financing grew 6% year-on-year
• Expected credit loss provisions declined 52.1%