United Overseas Bank (UOB) has announced a 3% year-on-year increase in its operating profit for the first half of 2025, reaching S$4.0 billion. This growth was primarily driven by a significant rise in fee income across various sectors. However, the bank’s net profit saw a 3% decline to S$2.8 billion, attributed to pre-emptive general allowances set aside in response to macroeconomic uncertainties.
The bank declared an interim dividend of 85 pence per ordinary share, maintaining a payout ratio of approximately 50%. Additionally, a special dividend of 50 pence will be distributed to shareholders as part of a capital distribution package announced earlier this year.
UOB’s net interest income remained stable, with loan volume growth offsetting the impact of lower benchmark rates. The bank’s non-interest income showed positive momentum, with net fee income rising 11% across wealth management, loan-related, and credit card services. Despite some challenges in trading and liquidity management, customer-related treasury flows supported a 1% increase in other non-interest income.
The cost-to-income ratio improved to 43.5% from 44.4% a year ago, reflecting tighter cost management. Asset quality remained stable, with a non-performing loan ratio of 1.6%, whilst credit costs stood at 34 basis points.
UOB’s Deputy Chairman and CEO, Wee Ee Cheong, highlighted the bank’s robust fee growth and resilient asset quality, stating, “Our regional franchise has gained significant scale following the Citigroup acquisition, expanding our customer base across ASEAN to more than 8.4 million.”
Looking ahead, UOB remains optimistic about ASEAN’s growth prospects, driven by regional integration and trade diversification. The bank is committed to supporting clients through uncertainties and investing in sustainable growth capabilities.
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