United Overseas Bank (UOB) reported a flat first-quarter 2025 net profit of S$1.49 billion, slightly below analyst expectations, as robust fee and loan growth were offset by increased allowances and macroeconomic uncertainties. Net interest income rose 2% to S$2.41 billion, driven by loan growth despite a marginal dip in net interest margin to 2.00%, while fee income surged 20% to S$694 million, supported by loan-related and wealth management activities. However, non-interest income declined 5% to S$554 million due to weaker trading and investment results, and allowances for credit losses rose to S$290 million, reflecting a more cautious stance amid economic headwinds. The non-performing loan ratio edged up to 1.6%. CEO Wee Ee Cheong highlighted ongoing macroeconomic risks, including US tariffs, prompting the bank to pause its 2025 earnings guidance as it anticipates slower global growth. Despite missing profit expectations, UOB’s strong capital position and resilient business fundamentals continue to attract positive analyst sentiment
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