SINGAPORE: Singapore's United Overseas Bank, or UOB, reported on Tuesday a 7% fall in net profit in the fourth quarter from a year earlier as margin headwinds outweighed loan growth.
UOB, Southeast Asia's third-largest bank by assets, said net profit for October-December dropped to S$1.41 billion ($1.11 billion) from S$1.52 billion a year earlier, though it beat the mean estimate of S$1.35 billion from three analysts polled by LSEG.
That follows a 72% slump in its third-quarter net profit, with the lender attributing the rebound to lower credit costs.
For the full 2025 financial year, UOB's net interest margin, a key gauge of profitability, dropped to 1.89% from 2.03% a year earlier. Its net interest income slid 3% year-on-year to S$9.36 billion.
However, net fee income rose 7% to a new record of S$2.6 billion, helped by wealth management and loan-related fees amid favourable market conditions and rising consumer confidence.
Its high-net-worth assets under management rose 6% from the previous year to S$201 billion in 2025.
"Despite the lower benchmark rates and U.S. tariff uncertainties, transaction banking continued to deliver steady performance, accounting for close to half of total wholesale banking income," UOB said in a news release.
U.S. President Donald Trump's tariff salvo has dominated markets since he took office last year, with the latest Supreme Court ruling and his subsequent response throwing the situation into deeper uncertainty.
The bank declared a final dividend of S$0.71 per share. Alongside an interim dividend of S$0.85 per share, that brings its total dividend for the year to S$1.56 per share.
UOB broadly maintained its outlook guidance for 2026, except for high single-digit fee growth for the year versus a high single-to double-digit fee growth projected previously in November.
Its results followed that of larger peer DBS Group , which posted on February 9 weaker fourth quarter earnings that missed analysts' forecasts.
Both Singaporean banks' earnings come ahead of global peers Standard Chartered and HSBC, which are due to announce results later on Tuesday and on Wednesday, respectively. - Reuters
