- UOB's 1Q25 revenue was in line with expectations, while net profit was slightly below consensus. Revenue came in at S$3,657mil (+4% y-o-y, +6% q-o-q), while net profit was S$1,490mil (flat y-o-y, -2% q-o-q).
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- Operating costs improved modestly to S$1,559mil (-1% y-o-y, -1% q-o-q), leading to a lower cost-to-income (C/I) ratio of 42.6% (4Q24: 45.6%).
Non-interest income rose 7% y-o-y, 24% q-o-q.
- UOB's net fee income came in at a record high of S$694mil in 1Q25 (+20% y-o-y, +22% q-o-q), supported by record-high loan fees as well as healthy wealth and card fees momentum.
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Higher credit costs of 35bps due to prudent general provisions; NPL ticked up to 1.6%.
- 1Q25 credit cost rose q-o-q to 35bps (4Q24: 25bps) driven by an increase in general provisions (GP) amid macro uncertainties. Total loan provisions amounted to S$290mil, 35bps (4Q24: S$212mil, 25bps), including general provisions (stage 1+2): S$156mil, 16bps (4Q24: -S$227mil, - 27bps) and specific provisions (stage3): S$133mil, 19bps (4Q24: S$439mil, 52bps).
- New non-performing asset (NPA) formation declined q-o-q to S$400mil (4Q24: S$514mil, average of S$353mil for last four quarters). Non-performing loan (NPL) ratio increased slightly to 1.6% (4Q24:1.5%).
Management maintained a prudent stance and reaffirmed its capital distribution commitment.
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