UOB FY14 net earnings jump 8% y/y to S$3,249m

Singapore led slight margin decline.

UOB reported FY14 net profit of S$3,249m, up 8% y/y and 4Q14 net profit of S$786m, down 9.3% q/q and up 1.7% y/y, 3% above Barclays' estimates and in line with Bloomberg consensus.

According to a research note from Barclays, a slight decline in net interest margin (-2bp q/q to 1.69%) was offset by lower-than-expected credit cost (stable q/q at 32bps).

Meanwhile, the report also noted that other underlying operating trends were solid.

Here's more from Barclays:

The margin decline was largely led by Singapore (-5bp q/q) and Malaysia (-6bp q/q), offset by better performance in Greater China (+11bp q/q).

Loans rose by 2% q/q in 4Q led by Greater China (+4.7% q/q) while Singapore lagged (+0.5% q/q). Deposit growth was a healthy 4% q/q, and was broad-based across UOB’s footprint.

Asset quality was stable q/q with NPL ratio at 1.2%. Housing loan NPL stabilized in 4Q after the NPL associated with a property project of $166m was recognised in the previous two quarters.

Total dividend per share declared for 2014 was 75c/share, no change from 2013, and payout ratio declined slightly to 37% (from 39%).