United Overseas Bank (UOB) reported net profit of 1.478 billion Singapore dollars for the quarter ended 30 Jun 2026, up 10 per cent year-on-year, supported by record wealth-management fees and resilient trade-finance volumes across its ASEAN markets.
Total income (treated as revenue) rose 4 per cent YoY to S$3.595 billion. The board declared an interim dividend of S$0.88 per ordinary share, representing a payout ratio of about 50 per cent.
Net interest income slipped 2 per cent YoY to S$2.297 billion as an 8-basis-point compression in net interest margin to 1.74 per cent outweighed 5 per cent loan growth. Net fee income climbed 5 per cent to S$665 million, led by a 16 per cent rise in wealth-management business, while other non-interest income jumped 28 per cent to S$632 million on asset-divestment gains. Total expenses expanded 6 per cent to S$1.629 billion, lifting the cost-to-income ratio to 45.3 per cent.
Wholesale banking maintained momentum despite softer capital-markets activity; transaction banking made up nearly half of wholesale income, buoyed by a 33 per cent YoY increase in trade loans and 9 per cent growth in current-account, savings-account balances. In Malaysia, Indonesia, Thailand and Vietnam, trade loans grew 14 per cent, reinforcing UOB’s regional franchise. Retail banking benefited from a 13 per cent rise in credit-card income and 4 per cent CASA growth, while high-net-worth assets under management expanded 7 per cent to S$204 billion.
Margin pressure from the lower-rate environment trimmed interest income, while specific allowances rose on the downgrade of a single Greater China real-estate account. Nevertheless, total credit costs held at 28 basis points and the non-performing-loan ratio was steady at 1.6 per cent. The common-equity Tier 1 capital ratio stood at 15.4 per cent, and liquidity coverage and net stable funding ratios remained comfortably above regulatory minima.
Management attributed the earnings resilience to diversified income streams and deepening customer engagement across ASEAN. Chief Executive Officer Wee Ee Cheong said the bank is intensifying investments in its regional network, wealth capabilities and transaction-banking platforms to capture larger shares of trade and investment flows. He noted that growing cross-border activity and sustained client demand for investment products underpin confidence in the bank’s long-term growth prospects, even as margin pressures persist.