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Maintaining liquidity a short-term hit to NIMs, but long-term benefit to fees, customer growth: UOB CEO

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Vivienne Tay
Tan Nai Lun

Vivienne Tay &

Tan Nai Lun

Published Thu, Feb 22, 2024 · 02:47 PM
    • UOB’s net profit for the fourth quarter is up 21.8 per cent at S$1.4 billion, compared with S$1.2 billion a year earlier, due to higher net fee income and other non-interest income.
    • UOB’s net profit for the fourth quarter is up 21.8 per cent at S$1.4 billion, compared with S$1.2 billion a year earlier, due to higher net fee income and other non-interest income. PHOTO: CMG

    UOB ’s net interest margins (NIMs) have taken a hit from the bank’s prudent move to protect liquidity. But investors should look beyond NIMs and understand the benefits that liquidity can bring for the bank’s fees business and customer base, said UOB chief executive Wee Ee Cheong.

    The bank’s NIM for Q4 2023 declined for a fourth straight quarter to 2.02 per cent. It was 2.09 per cent in Q3, and 2.22 per cent in Q4 2022.

    This was due to rising costs in maintaining deposits, coupled with the lack of loan growth, Wee said at a media briefing for the bank’s Q4 results on Thursday (Feb 22).

    UOBSingapore banksFinancial resultsSpotlight

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