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UOB’s Q1 net profit stays flat despite ‘record fee income and robust loan growth’

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SINGAPORE: UOB Group reported a net profit of S$1.5 billion for the first quarter of 2025, the same as the first quarter of last year. The flat result came even as the bank posted “record fee income and robust loan growth”, Singapore Business Review reported, citing the bank’s latest performance report.

UOB’s basic earnings per share (basic) stood at S$3.51 for the quarter.

Net profit fell by 2% compared to the fourth quarter of 2024 (Q4 2024). Operating profit for the bank climbed to S$2.1 billion, up 7% from a year ago and 11% higher than Q4 2024.

Net fee income climbed 20% to a record S$694 million on stronger loan-related and wealth management fees, while net interest income grew 2% to almost S$2.41 billion on 6% loan growth, though it was 2% lower than the previous quarter. Meanwhile, its non-performing loan (NPL) ratio inched up by 0.1 percentage point to 1.6%.

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Other non-interest income dropped 5% year-on-year (YoY) to $554 million, though it rose 25% from the previous quarter. The cost-to-income ratio improved from 44.6% to 42.6% due to tighter cost control, while the bank’s Common Equity Tier 1 (CET1) ratio, which compares a bank’s core capital to its risk-weighted assets, remained steady at 15.5%.

UOB CEO and deputy chairman Wee Ee Cheong said they expect slower global growth in the near term, with ongoing risks from tariffs and trade disruptions.

However, he noted that the region’s “competitive edge” in manufacturing and commodities will ensure its relevance as global supply chains reconfigure. He added that flows within ASEAN and between ASEAN and the rest of the world are expected to keep growing as countries find new ways to drive growth. /TISG

Read also: UOB slashes One Account rates for second year in a row, sparking frustration among customers

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