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Hot stock: UOB down 2% as Q3 profit hit by bad-loan charges
SHARES of UOB fell 2 per cent on Friday after the bank reported lower profit for the third quarter, as bad loan charges from its oil and gas exposure bite.
The stock lost 39 Singapore cents to S$18.55 as at 9.40 am.
UOB posted 7.8 per cent lower net profit for the third quarter on higher allowances from the oil and gas segment, and weaker non-interest income.
Net profit for the three months ended Sept 30, 2016 stood at S$791 million, compared with S$858 million for the same period a year ago. This beat the average forecast of S$747 million from five analysts polled by Reuters.
Total allowances stood at S$185 million in the third quarter, 15.7 per cent higher than S$160 million a year ago. The increase in specific allowance in loans in the quarter came largely from the oil and gas industry, said Singapore's smallest lender of the trio.