UOB's Q1 net profit falls 19% on lower margin, rising impairment
Analysts expect the bank to bear elevated credit costs as it delays recognising some NPLs due to virus relief measures
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CREDIT costs borne by United Overseas Bank (UOB) are expected to remain elevated at least until the first half of 2021, given that peak non-performing loan (NPL) recognition will likely be delayed until after the loan moratoria on relief measures end, analysts say.
The bank told analysts it was keeping to its earlier credit cost guidance of 50-60 basis points (bps) as it unveiled on Wednesday a 19 per cent fall in Q1 net profit on declining margins and a surge in impairment charges.
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