UOB's Fourth-Quarter Net Profit Declined on Lower Net Interest Income
By Megan Cheah and Amanda Lee
United Overseas Bank's net profit dropped in the fourth quarter, weighed down by weaker net interest income.
Net profit for the three months ended December fell 7.0% from a year ago to 1.41 billion Singapore dollars, equivalent to US$1.11 billion, the Singapore lender said Tuesday.
Total income was S$3.29 billion, down 5.0% from a year earlier.
Net interest income--the difference between what banks earn on loans and pay on deposits--fell 4.0% to S$2.35 billion in the quarter. This was attributed to margin headwinds, which outweighed healthy loan growth of 4.0%.
Net fee income rose 10% on year to S$625 million on broad-based growth. Other noninterest income dropped 28% due to lower trading and investment income.
For the full year, net profit fell 23% to S$4.68 billion, largely due to the lender's pre-emptive provisioning to strengthen its coverage amid evolving macroeconomic conditions, said UOB. The provisions were announced with the last quarter's results.
The lender's board recommended a final dividend of S$0.71 a share, compared with S$0.92 a year ago. This brings the total dividend for the full year to S$1.56 a share.
Write to Megan Cheah at megan.cheah@wsj.com and Amanda Lee at amanda.lee@wsj.com
(END) Dow Jones Newswires
February 23, 2026 19:14 ET (00:14 GMT)
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