UOB's Q2 net profit up 5.5%; net interest margin improves to 1.75%

UNITED Overseas Bank grew its second-quarter net profit by 5.5 per cent to S$845 million, or $2 per share on an annualised basis.

The bank has declared an interim dividend of 35 Singapore cents per share, equal to its payout a year ago.

For the six months ended June 30, net profit was up 5.5 per cent at S$1.7 billion.

Net interest income increased by 12 per cent to S$1.4 billion during the quarter, while fee and commission income rose 9 per cent to S$475 million. Net interest margin improved to 1.75 per cent compared to 1.68 per cent a year ago.

The non-performing loan ratio, however, increased to 1.5 per cent from a year-ago 1.4 per cent.