UOB, Singapore’s third-largest bank, said second-quarter net profit rose 10 per cent to S$1.48 billion (US$1.17 billion), above a S$1.40 billion average analyst estimate from LSEG.
Its net fee income rose 5 per cent to S$665 million, led by record wealth-management fees. Wealth-management income for the first half rose 16 per cent, including 30 per cent growth across Malaysia, Indonesia, Thailand and Vietnam.
“Our results reflect the resilience of our diversified franchise, and the momentum building across our key ASEAN markets,” UOB Deputy Chairman and Chief Executive Wee Ee Cheong said in a statement.
“We are seeing good progress across our businesses as we deepen customer relationships, expand our capabilities and connect customers to opportunities across our regional network,” he said.
“Looking ahead, we see significant opportunities to grow wealth, support cross-border ambitions and capture a larger share of trade and investment flows across ASEAN.”
Both lenders joined bigger peer DBS in reporting lower second-quarter net interest margins, a key measure of lending profitability that reflects the difference between what banks earn on loans and pay for deposits and other funding.
OCBC’s margin fell to 1.70 per cent in the second quarter from 1.92 per cent a year earlier, while UOB’s dropped to 1.74 per cent from 1.91 per cent. DBS on Thursday reported a decline to 1.87 per cent from 2.05 per cent.
OCBC now expects high-single-digit to low-double-digit loan growth, up from a previous mid-single-digit forecast.
UOB maintained its forecast for low-single-digit loan growth this year and expects its full-year net interest margin to be between 1.75 per cent and 1.80 per cent.
OCBC increased its interim dividend to 47 cents from 41 cents. UOB raised its interim dividend to 88 Singapore cents per share from 85 cents.