UOB posts 3Q21 net profit rose 57 percent to S$1.05B on loan growth, fee income

UOB branch at Tiong Bahru PlazaUOB branch at Tiong Bahru Plaza. Image taken pre-Covid.

UOB reported Wednesday its third quarter net profit increased 57 percent on-year to S$1.05 billion on healthy loan growth, sustained fee income and lower credit allowance.

Net profit came in just under a S$1.068 billion forecast from Daiwa.

UOB posted net interest income increased 9 percent on-year to S$1.60 billion in the July-to-September quarter, the bank said in a filing to SGX. The net interest margin (NIM) rose two basis points to 1.55 percent, the bank said.

The NIM was below Daiwa’s forecast for 1.58 percent, but beat the investment bank’s forecast for net interest income of S$1.34 billion.

Net fee income increased 15 percent on-year in the quarter to S$589 million, coming in in-line with Daiwa’s forecast.

The bank said its improved performance was due to diversified operations, using its digital, connectivity and sustainability capabilities.

“Cross-border revenue remained stable while loan-related, wealth and fund management  as well as credit card fees saw strong growth,” UOB said in the statement.

Wee Ee Cheong, deputy chairman and CEO of UOB, said the higher net profit built on the year’s strong growth momentum.

“This was amid a challenging macro backdrop with disruptions in global supply chains, China’s slowing economy and resurgent Covid-19 infections across the region,” Wee said in the statement.

“Amid near-term uncertainties, the gradual reopening of borders bodes well for business flows and we remain positive of strong activities along the Greater China-ASEAN trade corridors,” Wee said.

Read UOB’s third-quarter update for more segment details.