UOB : U11 0%’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).