UOB Q3 net profit rebounds 182.2% to S$1.25 billion off low base, but misses forecasts

United Overseas Bank (UOB) announced a significant rebound in net profit for the third quarter of 2026, marking an 182.2% increase to S$1.25 billion compared to S$443 million in the previous year. However, the results fell short of analysts' expectations, which stood at S$1.38 billion. The surge in profit was primarily driven by record fee income, fueled by growth in UOB's wealth management, card, and loan-related businesses. Customer-related treasury income also reached new heights due to high demand for hedging solutions.

Despite the impressive profit growth, UOB's earnings missed forecasts, with the consensus forecast among six Bloomberg analysts being S$1.38 billion. This was mainly because the bank's net profit had plummeted by 72% in the same quarter last year, driven by a substantial S$1.36 billion allowance for credit and other losses amid macroeconomic uncertainties and sector-specific challenges.

However, the latest quarter saw a slight 1% increase in net interest income to S$2.28 billion, down from S$2.27 billion in the same period last year. This decline was attributed to a narrowing net interest margin, which fell from 1.82% to 1.68%.

UOB's net fee income rose by 19% year-on-year to S$733 million, up from S$615 million previously. Meanwhile, other non-interest income dropped by 29% to S$370 million, primarily due to a decline in trading and investment income. The bank's allowances for credit and other losses were 81% lower at S$258 million compared to S$1.36 billion in the year prior.

The non-performing loan ratio also improved to 1.5%, down from 1.6% a year earlier. UOB was the first of Singapore's three major local banks to release its third-quarter earnings, with DBS and OCBC scheduled to announce their results on November 5 and November 6, respectively.