UOB’s Q3 net profit jumps 182% to $1.25b as bank sets aside less for bad loans
Compared with the previous quarter, its net profit fell 15% from $1.48 billion.
UOB reported a remarkable 182% increase in its third-quarter net profit, reaching $1.25 billion, as the bank reduced provisions for potential loan losses. The provision for credit and other losses dropped by 81% from $1.36 billion to $258 million. Despite a 15% decline in net profit compared to the previous quarter, UOB's net interest income grew by 1% year-on-year to $2.28 billion.
The bank's net fee income reached a record $733 million, a 19% increase, and a 10% rise from the previous quarter. Customer-related treasury income also hit a new high, driven by strong client engagement and demand for hedging solutions. Assets under management increased by 3% to reach $204 billion. UOB CEO Wee Ee Cheong attributed the strong performance to healthy customer activity across various businesses, including robust growth in wealth management, healthy loan growth, record fees, and customer-related treasury income.
The bank's net interest income remained stable at $2.3 billion, with a 1% increase year-on-year, as loan growth offset margin pressures. UOB's diversified franchise and customer relationships were highlighted as key strengths, with over 8 million customers in the region. The bank plans to expand its wealth franchise and strengthen its wholesale banking capabilities to support customer growth and capture cross-border opportunities.
UOB's strong performance contrasts with a recent decline in shares of local banks due to concerns about wealth management fees easing and scrutiny on their exposure to AI-related financing.
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