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News > UOB posts 11% rise in Q2 net profit

UOB posts 11% rise in Q2 net profit

Friday 29 July 2022

Singapore's smallest lender, United Overseas Bank (UOB), reported a rise of 11 per cent in second-quarter profit, supported by a strong improvement in net interest income amid increasing interest rates.

"This rising interest rate environment is set to further boost our margins for the year," chief executive Wee Ee Cheong said in a statement. "We continue to see economic activity picking up as borders reopen and investment flows resume."

In Singapore, consumer sentiment is holding up well and employment is strong, said Mr Wee, adding that institutional and private wealth inflows remain steady.

"As such, while the aggressive rate increases around the world are going to put a damper on global growth, we remain fairly optimistic of the resilience of our key markets in Southeast Asia," he said, adding that the long-term potential of the region "remains bright".

UOB posted a net profit of S$1.11 billion in the quarter to Jun 30, in line with market estimates. It is an 11 per cent increase from the S$1 billion a year earlier. Net interest income jumped 18 per cent, led by strong margin improvement and healthy loan growth while net fee income dropped 3 per cent.

For the first half of 2022, the bank reported a net profit of S$2.0 billion. The strong performance in the second quarter made up for a slower first quarter, said UOB.

Loan and investment banking fees hit a new high as UOB supported its business clients in their regional expansion.

The Group’s cross-border income grew 13 per cent year-on-year, despite near-term headwinds from macroeconomic uncertainties around the world.

UOB said it also continued to expand its sustainability portfolio with new products, solutions and initiatives in the first half of the year.

The bank's sustainable financing portfolio rose to S$20.0 billion, while its total assets under management in environmental, social and governance-focused investments stood at S$11.7 billion as at Jun 30.