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UOB's net profit rises 5.5% to $845m
The strong loan growth contributed to its earnings.
Local banking giant UOB achieved a robust set of results for the past quarter ending in June, with net earnings climbing 5.5% higher to $845m.
For the quarter, the banking group reported an improvement in both net interest income and non-interest income, growing 12% to $1.36b and 1.8% to $828m, respectively.
The net interest income was driven by the gross loan growth of 7.3% and an improvement in net interest margin of seven basis points to 1.75%.
Meanwhile, the non-interest income was boosted by the 9% growth in fee and commission income to $517m on higher credit card, fund and wealth management fees. Other non-interest income declined 8.3% driven mainly by lower net trading income.
The expenses of the group for the quarter also rose, up 7.3% to $995m due to higher staff and IT-related expenses.
Additionally, the total allowances increased 12% to$180m. Specific allowance on loans increased 42% to $172m mainly due to non-performing loans recoveries last year.
UOB CEO Wee Ee Cheong said amidst the moderate environment, the group achieved healthy performance with broad-based growth in revenue streams.
“Asia continues to hold much promise and UOB’s presence and expertise enable us to connect our customers with the opportunities across the region arising from burgeoning consumer affluence and growing intra-regional trade and investment," he said.
He furthered, "The recent signing of two Memoranda of Understanding in China are further examples of how we facilitate cross-border activities between China and Southeast Asia. We will continue to enhance our capabilities and productivity to strengthen our franchise further and to continue creating value for our shareholders.”
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