Tuesday, 5 March 2024

UOB's core net profit rose to record $1.19 billion in Q1

5 min read

UOB Group (UOB) has posted a record SGD1.6 billion ($1.19 billion) in core net profit for the first quarter of 2023 (1Q23), up 74% compared with the same period last year, delivering resilient performance with continued income growth. 

Net interest margin expanded 56 basis points driving net interest income up by 43%. Non-interest income surged on record high trading and investment income, which more than offset the decline in net fee and commission income.

The Group’s 1Q23 performance was underpinned by growth across wholesale, global markets and retail businesses. On a quarter-on-quarter basis, wealth management fees rebounded strongly from improved investor sentiments. Credit card fees also sustained momentum. 

Credit costs in 1Q23 stayed within expectations at 25 basis points, with non-performing loan (NPL) ratio stable at 1.6%. The Group’s balance sheet remained robust with adequate liquidity and Common Equity Tier 1 (CET1) ratio at 14.0%.

Wee Ee Cheong, deputy chairman and CEO of UOB said, “Recent pockets of banking instabilities in the US and Europe have led to some market volatility and added to concerns over the global growth outlook. Amid the challenging operating environment, our prudent management and long-term focus have put us in good stead.

"We delivered record profits this quarter, backed by our core businesses and diversified growth drivers. We also focused on strengthening our balance sheet, so that we can continue to support our customers through market cycles. Our Citigroup integration is progressing well. We are on track to close in Indonesia by the end of the year after completing our acquisitions in Malaysia, Thailand and Vietnam. As we scale up our regional franchise, we will continue to invest in capabilities and forge partnerships."

Asia is poised to register growth this year and the bank is well-positioned to ride on the region’s economic recovery with strong balance sheet, backed by healthy capital and liquidity positions.

 Re-disseminated by The Asian Banker

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