UOB said its net profit jumped 16% in Q4 2017 on back of strong growth in net interest income, fee income, and net trading income.
BankBazaar Singapore – February 14, 2018
Singapore: United Overseas Bank (UOB) announced a growth of 16% year-on-year (YoY) in its net profit for the quarter ended 31 December 2017 at S$855 million. The growth was mainly driven by increased net interest income, fee income, and net trading income, said the bank in its announcement.
Net interest income of the bank was up 15% YoY at S$1.46 billion, helped by strong loan growth and higher net interest margin. Non-interest income, which includes fee and commission income, rose to S$846 million, up 12% YoY.
Total expenses of the bank were up 15% YoY at S$1.1 billion. The growth in expenses was mainly led by increased performance-related staff costs, revenue-related and income tax-related expenses.
For the full year ended 31 December 2017, the bank’s net profit was up 9% YoY at S$3.39 billion.
Hit by the exposure to oil and gas and shipping sectors, the bank’s non-performing assets (NPAs) increased to S$4.39 billion as on 31 December 2017, compared to S$3.48 billion as on 31 December 2016.
Meanwhile, the bank’s loan-deposit ratio slipped to 85.1% as of 31 December 2017 from 86.8% a year ago. UOB’s gross customer loans were at S$236 billion at the end of 2017, up from S$225.66 last year.
Commenting on the performance, UOB’s Deputy Chairman and CEO, Wee Ee Cheong, said that the growth in the bank’s core businesses drove net interest income and fee income to new high in 2017.
Wee added that the core dividend for 2017 has increased to 80 cents per ordinary share, representing a growth of 14% over 2016.
Looking forward, the bank said that it will continue the growth momentum as overall economic outlook improves and as its customers step up their expansion plans in the region.