UOB Group has achieved a strong start to 2021, with first quarter (1Q21) net profit rising 46% quarter on quarter (QoQ) to S$1.0 billion. The solid rebound came on the back of broad-based growth across the Group’s diversified franchise.
Income also increased 11% on a quarterly basis to S$2.5 billion, which is around pre-COVID-19 levels. Fee income reached a new high, led by wealth management fees from investments and bancassurance. This was in addition to healthy loans and investment banking activities such as major advisory trades, coupled with stronger treasury income.
The Group’s strong performance was supported by its resilient, well-secured portfolio and asset quality. Credit costs in 1Q21 eased to 29 basis points in view of the proactive sizeable provisions made in 2020. Balance sheet remained robust with ample liquidity and strong Common Equity Tier 1 (CET1) ratio at 14.3%
Mr Wee Ee Cheong, Deputy Chairman and CEO, UOB said, “UOB has achieved a strong start to 2021 with revenue drivers accelerating in the first quarter and net profit rebounding strongly, up 46 per cent to S$1 billion. Our core businesses are growing well across our diversified franchise and we are seeing quality growth with record fee income.
We expect this momentum to continue as economic and business activity picks up and market sentiment improves across the region, starting with Singapore and Greater China.
Across our key markets, we are seeing robust credit demand from our large corporate and institutional clients. We support them through our established network and connectivity, deep sectoral insights and local expertise.
Asia’s prospects remain bright. Even so, we stay vigilant and nimble. As a responsible financial steward, we help our customers grow their business and wealth and create value for our stakeholders in forging a sustainable future.”
Re-disseminated by The Asian Banker