UOB 1Q25 - UOB Kay Hian 2025-05-08: Coping With Headwinds From Reciprocal Tariffs

UOB 1Q25: Coping With Headwinds From Reciprocal Tariffs

Published:
UOB (SGX:U11) | SGinvestors.io
  • UOB reported a net profit of S$1,490m for 1Q25 (flat y-o-y and -2% q-o-q). The results were slightly below consensus estimate of S$1,540m.

Mid-single-digit loan growth.

  • - Read this at SGinvestors.io -
  • By geographical region, UOB's loan growth was driven by Singapore (+6% y-o-y) and Malaysia (+7% y-o-y). Net interest income grew 2% y-o-y, held back by a shorter quarter.

Growth in non-interest income driven by fee income.

  • Net fee income grew by a double-digit 20% y-o-y, reaching a record high of S$694m in 1Q25, driven by loan-related fees (+28% y-o-y) and wealth management (+30% y-o-y). Treasury income from trading & liquidity management declined 12% y-o-y to S$466m in 1Q25.
  • - Read this at SGinvestors.io -

Discipline in imposing tight control over discretionary expenses.

  • Operating expenses increased marginally by 1% y-o-y in 1Q25 with lower IT-related expenses (-6% y-o-y) and other expenses (-9% y-o-y). Staff costs grew moderately by 4% y-o-y.
  • Cost-to-income ratio was 42.6% in 1Q25, an improvement of 2ppt y-o-y.

Asset quality slightly strained.

  • Read more at SGinvestors.io.



Above is an excerpt from a report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.



Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2025-05-08



Previous report by UOB:
2024-10-14 United Overseas Bank - Building The Future Of ASEAN.

Price targets by 5 other brokers at UOB Target Prices.

Listing of research reports at UOB Analyst Reports.

Relevant links:
UOB Share Price History,
UOB Announcements,
UOB Dividend Payout Dates & Corporate Actions,
UOB News






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