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UOB Q3 profit up 8% to S$1.12b
UNITED Overseas Bank posted a net profit of S$1.12 billion for the third quarter, rising 8 per cent from S$1.04 billion for the year-ago period, on the back of stronger client franchise income and trading and investment income.
The bank's net interest income rose 5 per cent to S$1.69 billion for the quarter ended Sept 30, driven by healthy loan growth of 8 per cent. Net interest margin fell by four basis points to 1.77 per cent amid declining interest rates and a competitive pricing environment, said UOB in a media statement (see amendment note).
Loans-to-deposits ratio was higher at 89.3 per cent compared with 85.7 per cent a year ago.
For the third quarter, UOB's net fee and commission income rose 14 per cent to S$551 million, thanks to higher fees from wealth management flows and loan-related and credit cards fees. Trading and investment income grew 67 per cent to S$310 million from improved customer flows and gains from investment securities, said the bank.
Total expenses in Q3 were up 14 per cent to S$1.15 billion, with cost-to-income ratio at 44.2 per cent, in line with income growth and investment in strategic initiatives.
Total allowances jumped 53 per cent to S$145 million, due to higher allowances for impaired assets, said UOB.
Amendment note: An earlier version of this article incorrectly stated that UOB's Q3 net interest margin was 1.72 per cent. It is in fact 1.77 per cent. The article above has been revised to reflect this.