UOB shares fall 5% after Q3 earnings miss forecast

[SINGAPORE] Shares of UOB were down more than 6 per cent at midday on Wednesday (Nov 4), after opening over 5 per cent lower. This came after the lender reported third-quarter earnings that missed analyst forecasts.

The counter fell 5.3 per cent to S$38.30 when the market opened. As at 9.29 am, the counter was down 5 per cent or S$2 at S$38.46, with 2.5 million shares traded.

Its trading volume was double the volume of its peers. DBS recorded a trading volume of 1.5 million shares, while OCBC saw 1.3 million shares traded over the same period.

UOB closed 5 per cent or S$2.02 down at S$38.44, with 11.4 million shares traded.

The other two local banks, DBS and OCBC, are scheduled to report their Q3 results on Thursday and Friday, respectively. Both counters were down over 1 per cent in early Wednesday trading in an overall weaker market.

UOB’s fall comes after the lender on Wednesday morning reported a 182.2 per cent year-on-year increase in net profit to S$1.25 billion for Q3 ended Sep 30, from S$443 million a year earlier.

THE BUSINESS TIMES INSIGHTS

Powering Asean's Future 2026

Find out how enterprises are navigating power constraints and sustainability targets

ACCESS THE INSIGHTS

However, earnings fell short of the S$1.38 billion consensus forecast from six analysts polled by Bloomberg.

The sharp increase came off a low base, following a 72 per cent plunge in net profit in Q3 2025, when the lender set aside S$1.36 billion in allowances for credit and other losses amid macroeconomic uncertainties and sector-specific headwinds.

While record net fee income from its wealth, cards and loan-related businesses supported earnings, net interest income was largely flat as margins came under pressure. Customer-related treasury income also hit a record, driven by strong demand for hedging solutions.

SEE ALSO

Singapore banks’ wealth fees may ease in Q3 as AI lending, bond yields draw scrutiny

Net interest income edged up 1 per cent to S$2.28 billion, from S$2.27 billion a year earlier. However, net interest margin, a key measure of lending profitability, narrowed to 1.68 per cent from 1.82 per cent.

Earnings per share rose to S$2.98 for the quarter on an annualised basis, from S$1.01 a year earlier.