UOB shares fall over 5% after Q3 earnings miss forecast

[SINGAPORE] Shares of UOB fell over 5 per cent at Wednesday’s (Nov 4) open 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 remained 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.

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 the third quarter ended Sep 30, from S$443 million a year earlier.

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

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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.

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.

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

Ahead of the earnings announcement, UOB shares closed 0.5 per cent or S$0.20 lower at S$40.46 on Tuesday.