UOB shares fall over 5% after Q3 earnings miss forecast

UOB's shares dropped more than 5 percent at the start of trading on Wednesday, November 4, following the bank's announcement that its third-quarter earnings fell short of analyst forecasts. The stock opened at S$38.30, a decline of 5.3 percent. By 9:29 a.m., the stock had fallen another 5 percent, or S$2, bringing its price to S$38.46.

UOB's trading volume for the day was double that of its peers, with 2.5 million shares exchanged. In comparison, DBS saw 1.5 million shares traded, and OCBC reported 1.3 million shares traded. DBS and OCBC, both other major local banks, are set to release their Q3 results on Thursday and Friday, respectively. Despite this, both UOB's shares and their counterparts were down over 1 percent at the opening bell.

UOB reported a 182.2 percent year-on-year increase in net profit to S$1.25 billion for Q3, ending on September 30, from S$443 million a year earlier. However, this result still fell below the S$1.38 billion consensus forecast from six analysts polled by Bloomberg. The sharp increase in earnings came off a low base, following a 72 percent plunge in net profit during Q3 2025.

The lender had set aside S$1.36 billion in allowances for credit and other losses due to macroeconomic uncertainties and sector-specific challenges. While record net fee income from wealth, card, and loan-related businesses bolstered the earnings, net interest income remained largely flat due to pressure on margins. Treasury income from customer-related activities hit a record high, propelled by strong demand for hedging solutions.

Net interest income grew by 1 percent to S$2.28 billion from S$2.27 billion a year earlier. However, the net interest margin, a key indicator of lending profitability, narrowed to 1.68 percent from 1.82 percent. Earnings per share for the quarter rose to S$2.98 from S$1.01 a year earlier. Prior to the earnings release, UOB's shares closed 0.5 percent, or S$0.20, lower at S$40.46 on Tuesday.