You are here
UOB's Q2 net profit falls 5.7% on weaker treasury and investment income
The UOB Group reported on Friday that its net profit for the second quarter of 2015 fell 5.7 per cent to S$762 million, from S$808 million a year ago.
The weaker performance was largely due to lower treasury and investment income.
Total income was up 2.2 per cent at S$1.93 billion. Net interest income grew 7.9 per cent to S$1.21 billion on higher loan growth and net interest margin. Net interest margin increased 6 basis points to 1.77 per cent, contributed mainly by higher loan yields as the loan portfolio re-priced on SIBOR increases.
Fee and commission income grew 13.4 per cent to S$465 million, with double-digit growth registered in wealth management, credit card and fund management income. Trading and investment income was lower at S$156 million mainly due to a one-off gain from investments and revaluation recognised a year ago. Consequently, non-interest income for Q2 decreased 6.1 per cent to S$714 million.
Total expenses increased 11.4 per cent from a year ago to S$877 million due to higher staff costs and IT-related expenses to support franchise growth. Total allowances of S$152 million were little changed from a year ago.
The bank said gross loans increased 4.8 per cent year-on-year to S$202 billion, while deposits were 11.7 per cent higher at S$241 billion as at June 30, 2015.
The board has declared an interim cash dividend of 35 cents per ordinary share.