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.
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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.
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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.
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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/.
