UOB 3Q Net Jumps On Sharply Lower Provisions
By Amanda Lee and P.R. Venkat
United Overseas Bank's net profit rose in the third quarter, as the lender set aside far less for potential bad loans than a year earlier.
Net profit for the three months ended September increased 182% from a year ago to 1.25 billion Singapore dollars, equivalent to US$975.55 million, the Singapore lender said Wednesday.
A year earlier, the bank's total allowances for credit and other losses were S$1.36 billion, including a pre-emptive provision of S$615 million in view of macroeconomic uncertainties and headwinds in U.S. and Greater China commercial real estate. This quarter, total allowances were only S$258 million.
Total income was S$3.38 billion, down 0.5% from a year earlier.
Net interest income--the difference between what banks earn on loans and pay on deposits--rose 1% to S$2.28 billion, despite net interest margin narrowing to 1.68% from 1.82% in a lower interest rate environment.
Net fee income rose 19% to S$733 million.
Other noninterest income fell 29% due to lower trading and investment income.
UOB is the first of Singapore's three major lenders to report earnings. DBS Group and Oversea-Chinese Banking Corp. are slated to report their results later this week.
Write to Amanda Lee at amanda.lee@wsj.com and P.R. Venkat at venkat.pr@wsj.com
(END) Dow Jones Newswires
November 03, 2026 18:45 ET (23:45 GMT)
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