United Overseas Bank (UOB) has reported a net profit of S$1.5b for the second quarter of 2026, marking a 10% increase from the previous year. This growth underscores the bank’s resilience amidst economic uncertainties and market volatility. For the first half of 2026, UOB’s net profit rose by 3% compared to the same period last year.
The bank’s board has declared an interim dividend of 88 cents per ordinary share, reflecting a payout ratio of approximately 50%. Despite a healthy 5% loan growth and active balance sheet management, net interest income decreased by 2% due to margin pressures from a lower interest rate environment. However, net fee income rose by 5% year on year to S$665m, driven by record wealth management fees.
UOB’s non-performing loan ratio stood at 1.6%, with credit costs for the quarter remaining within expectations at 28 basis points. The bank’s Group Wholesale Banking division continued to perform well, with transaction banking contributing nearly half of the total wholesale banking income. Trade loans increased by 33% year on year, and CASA (current account savings account) balances grew by 9%.
In the ASEAN-4 markets of Malaysia, Indonesia, Thailand, and Vietnam, trade loans rose by 14% and CASA balances by 9%, highlighting UOB’s strong regional franchise. Wealth management income for the first half of 2026 increased by 16%, with assets under management reaching S$204b, a 7% rise from the previous year.
UOB’s Deputy Chairman and CEO, Wee Ee Cheong, stated, “Our results reflect the resilience of our diversified franchise, and the momentum building across our key ASEAN markets. Looking ahead, we see significant opportunities to grow wealth, support cross-border ambitions and capture a larger share of trade and investment flows across ASEAN.”
