UOB Group posted a record high of SGD $1.4 billion ($995 million) net profit for the third quarter (3Q22), up 34% year on year driven by strong net interest income, higher customer related treasury income and lower credit allowance.
Net interest margin expanded 40 basis points, driving net interest income up by 39% which more than offset the 10 decline in net fee and commission income. Other non-interest income grew 58% as customer demand for hedging activities accelerated.
The Group’s 3Q22 performance was propelled by diversified growth across the wholesale and retail businesses. Cross-border income grew steadily while credit card fees were higher and the mortgage business remained resilient.
Credit costs in 3Q22 improved 5 basis points from last quarter to 17 basis points as asset quality stabilized with non-performing loan (NPL) ratio down to 1.5%.
The Group’s balance sheet stayed robust with healthy liquidity and Common Equity Tier 1 (CET1) ratio at 12.8%.
Mr Wee Ee Cheong, UOB’s Deputy Chairman and Chief Executive Officer, said, “UOB has achieved a strong quarter of record high net profit, buoyed by higher net interest income and customer related treasury income. While uncertainties continue to cloud the global economy, we expect the ASEAN economies to show resilience and avoid a recession.
We have recently launched our brand refresh, where we laid out our sharpened purpose to build the future of ASEAN We want to be a truly regional bank that grows with our customers and helps them achieve their ambitions.
Across ASEAN, we are making meaningful progress in growing our franchise. Our award winning digital platform, UOB TMRW, reached a significant milestone in August, achieving 1 million digitally acquired customers. This platform will also be key in serving our incoming Citibank customers across the region.
Looking ahead, the global economic outlook remains challenging. As a long term bank, we will stand by our customers to ride through this economic cycle with them. We will uphold our promise to do right by our customers and our stakeholders.”
Re-disseminated by The Asian Banker