UOB's Q3 net profit slips 1 per cent, declares one-off 80th anniversary dividend

THE UOB Group reported on Friday that its net profit for the third quarter ended Sept 30, 2015 slipped 1 per cent from a year ago to S$858 million.

Total income was 5.8 per cent higher at S$2.1 billion, led by strong core income and one-off gains from sale of investment securities.

Wee Ee Cheong, UOB's Deputy Chairman and Chief Executive Officer, said, "Our results demonstrate continued resilience amid volatility. Core revenue growth was led by net interest income and fee income while capital and funding positions remain robust.''

Net interest income rose 6.9 per cent to S$1.2 billion. Net interest margin increased 6 basis points to 1.77 per cent, contributed mainly by improved loan yields as the loan portfolio re-priced on rising interbank and swap offer rates in Singapore.

Non-interest income increased 4.2 per cent to S$850 million. Fee and commission income grew 2.1 per cent to S$485 million on higher contributions from credit card and wealth management income. Trading and investment income surged 20.6 per cent to S$310 million, driven by one-off gains from the sale of investment securities, partly offset by lower net trading income.

Total expenses increased 13 per cent to S$904 million mainly on higher staff costs and revenue-related expenses. Expense-to-income ratio was 43.4 per cent.

Loan-to-deposit ratio stood at 81.6 per cent, while non-performing loan ratio stood at 1.3 per cent on Sept 30, 2015.

The Group's strong capital position remained well above the MAS minimum requirements with Common Equity Tier 1 and Total CAR at 13.6 per cent and 16.4 per cent, respectively.

To commemorate the bank's 80th anniversary, a one-off 80th Anniversary dividend of 20 cents per ordinary share has been declared.