UOB Q4 net profit up 1.7% to S$786m

THE UOB Group on Friday posted a 1.7 per cent increase in its net profit for the fourth quarter ended Dec 31, 2014 to S$786 million on the back of broad-based growth across core income streams.

This brings its full-year profit to S$3.25 billion, which marks a new full-year high and an increase of 8 per cent from a year ago.

The strong performance for the full year was also contributed by broad-based growth. Total income rose 11 per cent year-on-year, crossing a new record at S$7.46 billion, mainly led by healthy loan growth and higher trading and investment income, including income from increased treasury customer flows.

In the fourth quarter, net interest income grew 6.7 per cent to S$1.17 billion with loan growth partially offset by a decrease in net interest margin. With a rise in fee and commission income as well as trading and investment income, non-interest income improved 5.4 per cent to S$682 million.

The group's liquidity and funding position remained sound. The loan-to-deposit ratio was steady at 83.8 per cent as at Dec 31, 2014 with well-paced deposit and loan growth of 9 per cent and 9.5 per cent respectively from a year ago. Asset quality stayed resilient with the non-performing loans (NPL) ratio stable at 1.2 per cent.

The board recommended a final one-tier tax-exempt dividend of 50 cents and a special one-tier tax-exempt dividend of five cents per ordinary share. This brings total dividend for the financial year ended Dec 31, 2014 to 75 cents per ordinary share.

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