[SINGAPORE] UOB’s net profit for its first quarter was flat amid broad-based growth, it said on Wednesday (May 7).
Net profit for the three months ended March 31, 2025 stood at S$1.49 billion, unchanged from the year-ago period.
The earnings missed the S$1.54 billion consensus forecast in a Bloomberg survey of five analysts.
Net interest income for the quarter rose 2 per cent to S$2.41 billion, due to robust loan growth.
Net interest margin was down to 2 per cent for the quarter, from 2.02 per cent in the previous corresponding period.
Net fee income rose 20 per cent to S$694 million on strong growth in loan-related and wealth activities. Meanwhile, other non-interest income fell 5 per cent to S$554 million from lower trading and investment income.
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The bank’s non-performing loans (NPL) ratio was 1.6 per cent, up from 1.5 per cent the same-period a year ago.
Meanwhile, credit costs in Q1 rose to 35 basis points (bps), from 25 bps in Q4, as the lender set aside additional pre-emptive allowance to strengthen provision coverage amid growing macroeconomic uncertainties.
Wee Ee Cheong, chief executive and deputy chairman of UOB, noted that macroeconomic uncertainties from the US tariffs have triggered significant market volatility and disruptions in global trade.
“We anticipate a slowdown in global growth in the near term and remain vigilant amid the uncertain global outlook,” he said.
Nevertheless, Wee noted Asean’s resilience and long-term potential, as well as the region’s competitive edge in manufacturing and commodities.
“We expect flows within Asean and between Asean and the rest of the world to continue growing as countries seek new ways to prosper,” he added.
Shares of UOB closed flat at S$34.98 on Tuesday, before the results were released.
