- UOB (SGX:U11)'s 3Q25 net profit of S$0.4b, -67% q-o-q and -72% y-o-y, was below market expectations. This was largely due to the sharp rise in general allowances.
- Allowances rose from S$279m in 2Q25 to S$1,361m in 3Q25.
3Q25 missed expectations, large provisions for commercial real estate.
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- Management has also given the assurance that 2025 final dividend payment will not be impacted by this general allowance and is still based on 50% of earnings. The NPL ratio remained relatively unchanged at 1.6%. NIM of 1.82% in 3Q25 was down from 1.92% in 2Q25.
Core earnings held steady.
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- Of this, the Wealth segment delivered the highest growth of 19% to S$619m or 24% of total NI.
- The credit card segment is the top contributor and accounted for 33% of total NI. In Thailand and as a result of rewards recalibration, there were higher miles redemption in 3Q25.
Wealth business saw net new money of S$5b in 3Q25.
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