United Overseas Bank's Second-Quarter Profit Rose Marginally

By Kimberley Kao

United Overseas Bank's second-quarter net profit grew marginally, driven by fee income growth and lower credit allowances.

Profit for the April-June period rose around 1.0% to 1.425 billion Singapore dollars, equivalent to US$1.07 billion, compared with the same period a year earlier while total income fell 2% to S$3.48 billion, the bank said Thursday.

Net interest income fell 1.5% to S$2.40 billion. However, income from fees rose 18% to S$618 million for the quarter, near an all-time high, driven by a strong rebound in loan-related and wealth management fees thanks to a pickup in lending activity and improved market sentiment, the bank said.

Credit card fees also saw a strong double-digit growth, it said.

Allowance for credit and other losses declined 36% on year to S$232.0 million in the quarter, UOB said.

UOB's chief executive Wee Ee Cheong said the bank's balance sheet was strong, but cautioned that "global growth continues to be weighed down by geopolitical tensions and higher interest rates."

"We have successfully integrated operations in Malaysia, Indonesia and Thailand, and the one-time costs will be reduced substantially as we move towards integration in Vietnam next year," Wee said.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

July 31, 2024 21:24 ET (01:24 GMT)

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