United Overseas Bank’s Fourth-Quarter Net Profit Rises 22% on-Year
United Overseas Bank’s fourth-quarter net profit rose thanks to higher non-interest income and fee-related revenues.
Profit for the quarter came in at 1.40 billion Singapore dollars (US$1.04 billion), up 22% on-year, with total income posting a 2% increase, to S$3.41 billion, the bank said Thursday.
The company said that net interest income was down 6% on-year, to S$2.40 billion, due to lower net interest margin. However, net fee income grew 17% during the fourth quarter, to S$569 million, as the bank’s wealth management and credit-card fees rose.
Non-interest income rose to S$438.0 million from S$$285.0 million on higher treasury income and strong performance from trading and liquidity management activities.
The board has recommended a final dividend of 85 Singapore cents a share that takes the total dividend payment payout of S$1.70 a share.
“Global economic outlook remains uncertain in the near term, but Southeast Asia continues to be a bright spot,” the bank’s Chief Executive Wee Ee Cheong said.
Analyst comment
Positive news: United Overseas Bank’s fourth-quarter net profit rose 22% YoY, with higher non-interest income and fee-related revenues. Net fee income grew 17%, and non-interest income rose significantly. The board recommended a final dividend of 85 Singapore cents a share. Analysts expect the market to react positively as the bank’s performance improved despite a challenging global economic outlook. Southeast Asia’s strength is seen as a positive factor.
