UOB Posts Fourth-Quarter Profit Decline, Cuts Fee-Growth Guidance — Update

By Megan Cheah and Amanda Lee

United Overseas Bank's net profit dropped in the fourth quarter, weighed 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. Net fee income rose 10%, while other noninterest income dropped 28%.

For the full year, net profit fell 23% to S$4.68 billion, largely due to the lender's pre-emptive provisions disclosed in the last quarter, said UOB.

The lender's board recommended a final dividend of S$0.71 a share, bringing the total dividend for the full year to S$1.56 a share.

Despite the net profit fall, Chief Executive and Deputy Chair Wee Ee Cheong described results as "resilient," citing fee momentum.

Southeast Asia's growth trajectory also remains intact, he added, given digitalization and deepening regional integration. UOB operates across Southeast Asian markets including Malaysia and Thailand.

While the lender maintained most of its outlook for 2026, it cut its fee-growth guidance to high single digits. It previously expected growth of high single to double digits.

UOB's overall results appeared neutral to negative to Citi analyst Tan Yong Hong. The bank's fourth-quarter preprovision operating profit missed Citi's estimates due to weaker fee and trading income, but the miss was mitigated by lower-than-expected provisions from loan and nonloan write-backs.

The results came as shares in Singapore's third-largest bank by assets have risen sharply in recent months. The stock has risen about 15% since its November low, hitting a record in January.

Singapore's banking sector is expected to gain from the city-state's relative safe-haven status, although lackluster earnings could be a headwind, said Jayden Vantarakis, head of Asean equity research at Macquarie Capital.

Earlier this month, UOB's larger Singapore rival, DBS Group, reported an around 10% drop in fourth-quarter net profit. Oversea-Chinese Banking Corp. is scheduled to report earnings Wednesday.

Write to Megan Cheah at megan.cheah@wsj.com and Amanda Lee at amanda.lee@wsj.com

(END) Dow Jones Newswires

February 23, 2026 19:57 ET (00:57 GMT)