UOB announces 1Q2024 net profit of $1.42 bil, up 1% y-o-y, down 4% q-o-q, and 1H2024 net profit of $2,92 bil

The Edge Singapore
2-min read

UOB announces 1Q2024 net profit of $1.42 bil, up 1% y-o-y, down 4% q-o-q, and 1H2024 net profit of $2.92 bil unchanged y-o-y

United Overseas Bank announced core net profit of $1.489 billion for 2Q2024, down 5% q-o-q and 1% y-o-y. Including Citi integration costs, net profit rose 1% y-o-y but fell 4% q-o-q to $1.425 billion. This compares with the Street's estimate of $1.42 billion for 2Q2024. In 1H2024, UOB reported a net profit of $3.05 billion, down 1% y-o-y. Including Citi integration costs, net profit in 1H2024 was unchanged at $2.92 billion.

Asset quality remained resilient with non-performing loan (NPL) ratio stable at 1.5% and total credit costs at 24 basis points.

UOB declared an interim dividend of 88 cents per share for a payout ratio of around 51.6%, and up from 85 cents in 1H2023.

Net interest income for 2Q2024 eased 1% y-o-y from lower net interest margin but grew 2% from the previous quarter due to broad-based loan growth and improved margins. Net interest margin in 2Q2024 rose 3 basis point q-o-q but fell 7 bps y-o-y.

Net fee income for 2Q2024 grew 18% year on year to a near historical high of $618 million, driven by a rebound in loan-related and wealth management fees and double-digit growth in credit card fees. Other non-interest income declined 21% compared with last year as stronger customer-related treasury income was moderated by lower swap gains and valuation on investments.

Group Wholesale Banking’s trade and loan-related fees for 2Q24 grew 19% year on year in tandem with the pickup in demand for loans and deals booked in the quarter. Cross-border income now makes up around 25% of total Wholesale Banking income, while Transaction banking revenue accounts for around 53% of total Wholesale Banking income.

Group Retail’s wealth management income for 2Q24 grew 40% year on year led by improved sales in structured notes, bonds and unit trusts, as well as steady growth in bancassurance. Card fee income sustained growth this quarter, boosted by continued consumer confidence and spending. The Group continued to see positive net new money inflows, bringing total assets under management from affluent customers to S$182 billion, 10% higher than a year ago.

 

See Also: