UOB's Q1 profit falls 4.4% on flat growth, higher costs

Total allowances on loans down 30.7% to S$117m but specific provisions on loans more than double to S$133m

Published Thu, Apr 28, 2016 · 09:50 PM

Singapore

UNITED Overseas Bank (UOB) on Thursday opened the results reporting session for the three Singapore banks with a 4.4 per cent fall in earnings for the first quarter, as higher costs came up against flat income growth, and higher tax expenses. Bad loans stayed concentrated in the oil-related segment.

The smallest of the trio, UOB said net profit stood at S$766 million for the quarter ended March 31, 2016, down from S$801 million in the same period a year ago. This was largely in line with analysts' expectations. A Bloomberg poll of five analysts showed up a S$767 million average forecast; a similar survey of five analysts by Reuters yielded a forecast of S$764 million.