UOB’s net profit slipped 5.7% to $762m in Q2

Increased market volatility is to blame.

UOB reported that its net profit slipped 5.7% year-on-year to $762m in the second quarter, missing consensus expectations of $813m.

The unexpected decline was mostly due to lower trading and investment income, which fell 30.5% quarter-on-quarter to $156m.

Trading and investment income was impacted by market volatility, coupled with a one-off gain from investments and revaluation in the same quarter last year.

On a half-year basis, UOB's net profit fell 2.1% to $1.56 billion, as tax expenses normalised from a higher write-back of the prior years’ provisions in 1H14.

UOB's Board has declared an interim cash dividend of 35 cents per ordinary share. The scrip dividend scheme will not be applied to the interim dividend.