SINGAPORE: Singapore's United Overseas Bank, or UOB, on Wednesday posted a net profit for the July-September period that missed expectations, despite stronger loan-related activities and wealth management fees reaching an all-time high.
UOB's third-quarter net profit of S$1.25 billion ($975.72 million) was more than double that of a year earlier, but the year-ago quarter was a low base due to a surge in credit provisions by the lender.
The results underperformed the mean estimate of S$1.35 billion from two analysts, according to LSEG data.
Here are some details:
Net fee income jumped 19% on an annual basis to a record S$733 million, helped by strong growth in wealth, cards and loan-related activities
Wealth management fees reached a record S$258 million in the third quarter, with net new money totalling S$5 billion in the first nine months of 2026
Trading and investment income slid 33% year-on-year to S$322 million owing to less favourable market conditions, the bank said. That weighed on its other non-interest income, which fell by 29% year-on-year to S$370 million
UOB's net interest margin narrowed 6 basis points quarter-on-quarter to 1.68% due to higher funding costs
For its 2027 outlook, the lender said it expects loan growth to come in at a mid-single-digit range, while it forecasts net interest income to be above 2026's levels. Meanwhile, it expects fee income to reach mid- to high-single-digit growth
($1 = 1.2811 Singapore dollars) - Reuters
