UOB is keeping a positive outlook on its net interest margin (NIM), particularly after the latest round of interest rate hikes by the US Federal Reserve, said group chief financial officer Lee Wai Fai.

NIM for the lender’s second quarter ended Jun 30 stood at 2.12 per cent, down from 2.14 per cent a quarter earlier. But Lee said this was because liquidity surplus was deployed into high quality, lower yielding assets.

In fact, its loan margin held up at 2.62 per cent, from 2.61 per cent last quarter, signalling some strength.