United Overseas Bank Records Marginal Decline in Q3 Net Profit

United Overseas Bank (UOB) reported a slight decrease in its net profit for the third quarter, primarily due to a higher provision for credit losses. The bank disclosed that its profit for the quarter amounted to 1.38 billion Singapore dollars (US$1.01 billion), representing a 1.0% year-on-year decline.

Growing Total Income and Net Interest Income

During the same period, UOB experienced a 9% increase in total income, reaching S$3.46 billion. Net interest income also showed positive growth, amounting to S$2.43 billion compared to S$2.23 billion in the previous year.

Rise in Income from Fees and Commissions

UOB observed a 14% rise in income derived from fees and commissions, totaling S$591 million. This increase was primarily driven by higher loan-related and credit card fees.

Higher Provisions for Credit and Other Losses

In the third quarter, UOB made an allowance of S$235.0 million for credit and other losses, compared to S$104.0 million in the same period last year. This move reflects the bank’s proactive approach to risk management amid global economic uncertainties and recent geopolitical tensions.

UOB’s Chief Executive, Wee Ee Cheong, expressed confidence in the bank’s robust balance sheet, which positions it well to navigate through these uncertainties.