UOB’s nearly S$1 billion in extra allowances akin to ‘buying insurance’: CEO Wee Ee Cheong

[SINGAPORE] UOB’s decision to increase allowances by almost S$1 billion – which led net profit to tumble by more than two thirds – for the latest quarter is “very positive” because it is akin to “buying insurance”, said deputy chairman and chief executive officer Wee Ee Cheong.

On Thursday (Nov 6), UOB reported that for the three months ended Sep 30, allowances for credit and other losses more than quadrupled to S$1.36 billion, from S$304 million a year earlier.

As a result of the higher allowances, net profit fell 72 per cent to S$443 million, from S$1.61 billion in the same period a year earlier.