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UOB net profit up 17% in Q3 on loan growth, lower allowances
UNITED Overseas Bank has posted a net profit of S$1.04 billion in the third quarter, up 17 per cent from S$883 million a year ago, as net interest income rose 14 per cent to S$1.6 billion, driven by healthy loan growth and a net interest margin uplift of 2 basis points.
Net fee and commission income rose 2 per cent to S$484 million due to higher loan-related, credit card and trade-related fees. Other non-interest income fell 13 per cent to S$244 million in the absence of stronger gains from investment securities recorded in the same year-ago period.
Total expenses for the quarter rose 12 per cent from a year ago to S$1.01 billion, mainly from higher staff costs and IT-related expenses. The cost-to-income ratio for the quarter was 43.4 per cent.
Total allowances more than halved to S$95 million, largely due to high allowances provided for impaired loans from the oil and gas and shipping sectors in the third quarter last year.