UOB's Q3 profit rises 3.3%

UNITED Overseas Bank (UOB) yesterday recorded a better than expected third-quarter net profit of $730 million, up 3.3 per cent year on year, driven by loans growth and stable margins. Although the $730 million was down 6.8 per cent quarter on quarter, it was higher than analysts' expectations of $703 million in a Bloomberg poll.

Annualised earnings per share were $1.74, down from $1.97 in Q2 but higher than $1.69 from a year ago. Return on equity was 11.7 per cent, lower than 13.1 per cent in Q2 and 12.1 per cent from a year ago. For the nine months, net profit was up 6.1 per cent year on year at $2.24 billion.

"The group has achieved another decent set of results this quarter, driven by steady core income and continued growth in our regional franchise. This was underpinned by stable margins and healthy asset quality as we stayed disciplined in pursuing sustainable growth," said UOB chief executive Wee Ee Cheong.