- We remain watchful of asset quality risks in an environment of slower global growth amidst concerns of accelerating Fed cuts, on top of UOB’s commercial real estate (CRE) exposures.
- UOB’s average loan-to-value (LTV) for office CRE continues to be ~50%, providing a buffer in the event underlying collateral valuations collapse.
UOB's 2Q25 revenue and net profit missed consensus.
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- Net interest income (NII) moderated to S$2,336mil (-3% y-o-y, -3% q-o-q) as asset growth cushioned effects of sharp decline in benchmark rate. Net interest margin (NIM) declined 9bps q-o-q to 1.91% (1Q25: Stable q-o-q at 2.00%) on lower asset yields amid declining benchmark rates.
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Non-interest income rose 5% y-o-y but declined 10% q-o-q.
- Net fee income stood at S$636mil (+3% y-o-y, -8% q-o-q), normalising from last quarter’s record high, as wealth fees was affected by investors’ cautious approach amid macroeconomic uncertainties. Other non-interest income of S$493mil (+8% y-o-y, -11% q-o-q) was driven by lower trading and liquidity management activities.
Lower credit cost of 32bps; NPL stable at 1.6%.
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