UOB posts smaller-than-expected 19% drop in Q1 profit

[SINGAPORE] United Overseas Bank (UOB) reported a smaller-than-expected 19 per cent drop in first-quarter net profit on Wednesday, but it increased impairment charges to reflect worsening economic conditions due to the novel coronavirus outbreak.

UOB said its impairment charges rose to S$286 million in the three months to March 31, 2020, from S$93 million a year earlier. It booked an additional regulatory loss allowance reserve of S$260 million, up five times from a year ago.

Net profit at Singapore's third-largest listed lender dropped to S$855 million in the latest quarter from S$1.05 billion a year earlier, compared with an average estimate of S$739.3 million from three analysts, according to Refinitiv data. The profit level was the lowest in just over 2 years, according to Refinitiv data.

UOB shares closed at S$19.90 on Tuesday, up S$0.09 or 0.5 per cent.

REUTERS