SINGAPORE – UOB posted a rise in second-quarter net profit as net fee income rose, led by record wealth management fees.
Net profit for the three months to June 30 was $1.48 billion, up 10 per cent from $1.34 billion a year ago, and beating analysts’ expectations of $1.45 billion in a Bloomberg poll.
The board declared an interim dividend of 88 cents per ordinary share for the half-year, up from 85 cents a year ago and representing a payout ratio of approximately 50 per cent.
Net interest income in the quarter fell 2 per cent to $2.3 billion on lower interest rates, with net interest margin narrowing to 1.74 per cent from 1.91 per cent a year ago.
Net fee income rose 5 per cent to $665 million, supported by strong growth in wealth and fund management activities, while other non-interest income jumped 28 per cent to $632 million.
Total allowances decreased 24 per cent mainly because the bank no longer needed some of the funds it set aside to cover potential loan losses.
In a statement, UOB deputy chairman and chief executive Wee Ee Cheong said the bank sees significant opportunities to grow wealth, support cross-border ambitions and capture a larger share of trade and investment flows across ASEAN.
“We are sharpening our focus and investing in capabilities that will drive long-term value for our customers and shareholders.”
For its 2026 outlook, UOB largely kept its guidance unchanged, except that it now expects low single-digit fee income growth, down from high single-digit fee income growth previously.
It also expects low single-digit loan growth, unchanged from previous guidance. The bank also maintained its full-year guidance for net interest margin of 1.75 per cent to 1.8 per cent, low single-digit operating cost growth and total credit costs at 25 to 30 basis points.
UOB and OCBC reported second-quarter earnings on Aug 7, with DBS kicking off the season on Aug 6.
DBS will pay shareholders 81 cents in dividends per share for the second quarter, as net profit grew 9 per cent on record wealth management income.
Net profit amounted to $3.08 billion, up from $2.82 billion a year ago, beating analysts’ expectations of $2.87 billion.
OCBC Bank declared an interim dividend of 47 cents per share for the first half of the year, as net profit for the second quarter grew 22 per cent.
