UOB positive on Asean despite pandemic; Q2 net profit up 43%

Published Wed, Aug 4, 2021 · 07:14 AM

UOB struck a positive note on growth in Asean, even as the Covid-19 pandemic continues to ravage key markets, but stopped short of writing back provisions in line with global banks as uncertainties remain.

In its half-year results briefing, UOB's chief executive and deputy chairman Wee Ee Cheong told the media that with vaccination rates picking up in the region, there are "limited downsides, and more upsides now" for the bank. He added that UOB is still fairly optimistic for the next 12 months.

On Wednesday, UOB's net profit for its second quarter rose 43 per cent, as more economies reopened and as it posted lower credit allowance.

Following the lifting of dividend caps, the bank declared an interim dividend of 60 cents per ordinary share, up from 39 cents for the same period a year ago. This translates to a dividend payout ratio of 50 per cent, bringing it back to pre-pandemic levels. It is also higher compared with peer OCBC, which also released its second-quarter resul…