UOB profit up 28% to $788.49m in Q2

Earnings were boosted by net interest income which hit $1.54b.

UOB maintained its positive growth momentum after the bank’s profits surged 28% YoY to $788.49m (S$1.08b) in Q2 on the back of strong operating income, according to its financial statement.

Net interest income rose 14% YoY to $1.12b (S$1.54b) amidst steady loan growth which hit 10% in Q2. Net interest margin, a common indicator of profitability, also rose 8 basis points to 1.83%.

Net fee and commission income also hit $363.69m (S$498m) amidst robust growth in loan-related, fund management, credit card and trade-related fees.

The bank declared an interim dividend per ordinary share of 50 cents.

However, the bank’s total expenses also grew by 10% YoY to $744.69m (S$1.02b) amidst higher staff expenses and IT-related investments. UOB’s cost-to-income ratio stood at 43.6% in Q2.

“Testament to our focus on generating sustainable growth, our second quarter results are built on the healthy growth momentum in the first quarter,” Wee Ee Cheong, deputy chairman and CEO at UOB said in a statement.

The government's cooling measures are expected to hit UOB the hardest of its peers due to its greatest exposure in property-related lending. The bank's housing loans are estimated at 27.9% whilst OCBC and DBS are at 27.6% and 21.4% respectively, according to UOB Kay Hian.