UOB Aims to Double Wealth Income; Net Profit Falls on Softer Environment — Update

By Amanda Lee

United Overseas Bank plans to double its wealth income by 2030, positioning wealth management as a key pillar of growth amid market volatility and as rate tailwinds fade.

The bank's immediate focus is to grow assets under management and increase the share of managed assets already invested, said Wee Ee Cheong, UOB's deputy chairman and chief executive, on an earnings call Thursday. UOB will execute this goal over the next few quarters, he said.

The bank, Singapore's and Southeast Asia's third largest by assets, sees the region as a great opportunity for wealth-income flows, according to Wee, and is paying close attention to Greater China, a region that includes Hong Kong and Taiwan.

Regarding wealth flow opportunities from the Middle East, Wee said that it isn't so obvious at this point. "Long term, it may swing some of the activity back to us, but [that] is yet to be seen."

Wee's comments come as banks increasingly look to fee-led businesses for stability amid margin pressure due to a lower interest-rate environment and rising competition for loans.

UOB maintained its previous guidance for 2026, including targeting low single-digit loan growth and high single-digit fee growth.

Analysts say Singapore lenders could benefit from market volatility triggered by the Middle East conflict, with the banking sector's wealth management business likely to be a standout performer.

Banks and nonbanking financial institutions in Singapore stand to gain from increased safe-haven flows, especially from Middle Eastern wealth centers, Maybank analysts said in a recent note.

At the same time, the conflict poses risks, with elevated oil prices threatening to slow global growth and push inflation higher. Such an outcome could put pressure on credit demand, Maybank wrote.

UOB earlier reported a 3.6% drop in first-quarter net profit to 1.44 billion Singapore dollars, equivalent to US$1.14 billion, citing a softer operating environment. Total income was S$3.42 billion, down 6.4% from a year earlier.

Net interest income--the difference between what banks earn on loans and pay on deposits--fell 3.5% to S$2.32 billion due to lower benchmark rates.

Net fee income also declined, falling 8.2% to S$637 million from last year's record high. Investment banking and loan-related activities moderated amid cautious, risk-off market sentiment, the bank said.

Write to Amanda Lee at amanda.lee@wsj.com

(END) Dow Jones Newswires

May 07, 2026 01:39 ET (05:39 GMT)