November 3, 2021

UOB Q3 profit jumps 57% to $1.05 billion, above estimates

By ellen

SINGAPORE – UOB’s earnings continued to rebound from last year on the back of loan growth and sustained fee income, as well as lower allowances.

Singapore’s third-largest lender on Wednesday (Nov 3) posted a 57 per cent year-on-year increase in third-quarter net profit to $1.05 billion – slightly above the $1 billion average estimate of four analysts polled by Bloomberg.

UOB chief Wee Ee Cheong said the bank’s results came amid a challenging macroeconomic backdrop with disruptions in global supply chains, a slowdown in China’s economy and resurgent Covid-19 infections across the region.

“Amid near-term uncertainties, the gradual reopening of borders bodes well for business flows and we remain positive of strong activities along the Greater China-Asean trade corridors,” he added.

Net interest income climbed 9 per cent to $1.6 billion, while net interest margin – a key gauge of banks’ profitability – rose 2 basis points to 1.55 per cent.

Net fee income rose 15 per cent to $589 million amid broad-based growth, especially in loan-related, wealth and fund management, and credit card fees. 

Other non-interest income dipped 5 per cent to $259 million, mainly from lower investment gains. 

Total allowances for the quarter fell to $153 million, compared with $476 million a year ago. 

The group’s net profit rose 4 per cent from the previous quarter. Its earnings for the first nine months of this year rose 37 per cent to $3.06 billion.