SINGAPORE – UOB Group posted a fall in first-quarter net profit on the back of what it called a softer operating environment, the bank said on May 7.
Net profit for the three months to March 31 was $1.44 billion, down 4 per cent from $1.49 billion a year ago, but beating analysts’ expectations of $1.39 billion in a Bloomberg poll.
Net interest income fell 4 per cent to $2.32 billion on lower benchmark rates, with net interest margin narrowing to 1.82 per cent from 2 per cent a year ago.
Net fee income slid 8 per cent to $637 million, while other non-interest income plunged 17 per cent to $462 million, mainly due to softer trading and investment income.
But the bank lowered its allowance for credit and other losses by 30 per cent to $203 million, mainly due to lower general allowance.
The group’s non-performing loan ratio was 1.5 per cent, down from 1.6 per cent a year ago. Coverage levels continued to be sound and adequate, UOB said.
Mr Wee Ee Cheong, deputy chairman and chief executive at UOB, said in a statement that the group delivered a steady performance in the first quarter.
“While global uncertainty remains elevated, business activity held up across our key segments, with ongoing momentum in CASA (Current Account Savings Account), wealth, cards and loans.”
He said the bank will leverage its regional footprint and deep Asean connectivity to stand ready to support customers as they navigate a more uncertain operating environment.
For its 2026 outlook, UOB kept its guidance unchanged, including low single-digit loan growth, high single-digit fee income growth, low single-digit operating cost growth and total credit costs at 25 to 30 basis points.
Mr Wee also maintained a full-year net interest margin of 1.75 per cent to 1.8 per cent and low single-digit loan growth.
UOB is the second of Singapore’s three local banks to report first-quarter earnings, with DBS kicking off the season on April 30. OCBC will announce its earnings on May 8.
