UOB’s Q3 net profit rises 12% to S$883 million

0
45

SINGAPORE: United Overseas Bank (UOB) reported on Friday (Nov 3) that its third-quarter net profit rose 12 per cent to S$883 million from the same period last year, largely due to stronger net interest income and fee and commission income.

The increase was partly offset by lower trading income and higher operating expenses and allowances.

Net interest income increased 15 per cent to S$1.41 billion, driven by higher net interest margin and loan growth.

Non-interest income increased 2 per cent to S$830 million.

Fee and commission income grew 12 per cent to S$551 million from wealth management, fund management and credit card businesses. This was partly offset by lower net trading income.

Mr Wee Ee Cheong, UOB’s deputy chairman and chief executive officer, called the takings its “strongest quarter yet”, and expressed confidence in the “favourable growth drivers” in the region.

“Amid signs of pick-up in the global economy and driven by higher revenues from our diversified banking franchise, we have achieved our strongest quarter yet,” Mr Wee said in a press release before markets opened.

“Despite ongoing uncertainties in the external environment, we believe in Asia’s long-term prospects which are backed by its favourable growth drivers. We continue to invest in capabilities to support our customers’ regionalisation ambitions and rising wealth needs.”

UOB’s stock was down marginally at 0.2 per cent at S$24.74 in early trading. The counter has risen about 21.3 per cent this year.

UOB’s third-quarter financial report comes a day after the bank announced that former deputy prime minister Wong Kan Seng has been nominated to succeed incumbent independent non-executive chairman Mr Hsieh Fu Hua, 67, who will retire next year.

Mr Wong, who is 71, joined UOB’s board on Jul 27.

UOB also said that chairman emeritus Dr Wee Cho Yaw, who turns 89 next January, will retire from the board after six decades of service.

OCBC was the first Singapore bank to report its third-quarter results last week, with net profit coming in at 12 per cent higher year-on-year.

DBS will report their third-quarter results on Nov 6.