On the back of rising credit card, fund, and wealth management fees.
UOB’s stellar quarterly performance in the past quarter was brought about by robust net interest and non-net interest incomes.
In terms of non-net interest income (NII), yields inched up 2% as fees rose 9% on the back of the now-familiar theme of rising credit card, fund and wealth management fees, CIMB said.
Meanwhile, OCBC Investment Research noted that in the past quarter, one clear winner was Wealth Management, which posted a 24% YoY and 7% QoQ increase in contribution to $136m – the largest contributor to its Fee & Commission Income.
“While cost and some technology-related expenses are likely to go up, we expect the cross-selling of more products in its key markets to provide organic growth for its Wealth unit,” OCBC Investment Research said.
However, lower net trading income led to the 8% decline in other non-NII.
To recall, UOB reported a 5% increase in net profit to $845m.
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