Singapore’s UOB posts 4pc profit drop as softer rates weigh on earnings
SINGAPORE, May 7 — Singapore’s United Overseas Bank (UOB) recorded a 4 per cent fall in first-quarter net profit from a year earlier, as weaker interest rates and a softer operating backdrop weighed on earnings, although the result still came in ahead of market expectations.
According to CNA, the lender’s income streams all weakened in the January to March period, even as it reiterated its full-year 2026 outlook despite the more cautious environment.
Net interest income slipped 4 per cent year-on-year, dragged by lower benchmark rates, while fee income eased 8 per cent after a slowdown in investment banking and loan-related activity amid more risk-averse sentiment. Other non-interest income dropped 17 per cent, reflecting softer trading and investment performance.
Net profit came in at S$1.44 billion (RM4.44 billion), down from S$1.49 billion a year earlier, but above the S$1.38 billion forecast from a poll of analysts.
Chief executive Wee Ee Cheong said in a statement that while uncertainty in global markets remained elevated, business activity across key segments held up, supported by steady momentum in current account deposits, wealth, cards and lending.
Profitability, as measured by net interest margin, narrowed to 1.82 per cent from 2.00 per cent a year earlier.
On the wealth front, income rose 6 per cent, while assets under management expanded 5 per cent to S$198 billion, offering some offset to broader weakness in other segments.
The results came shortly after regional peers also reported mixed performances, with DBS Group posting stronger-than-expected earnings driven by wealth management growth. Elsewhere, Standard Chartered beat forecasts, while HSBC reported an unexpected loss tied to exposure linked to a failed UK mortgage lender.
