UOB profit set to slide 16.7% on lower wealth and loan fees

It will take time for UOB to return to its peak profitability, the report said.

United Overseas Bank (UOB) is expected to report a net profit of S$1.28b for Q4 2025— but a high base effect from 2024 will mean this is a 16.7% year-on-year (YoY) decline, said CGS International (CGSI)

A one-off deferred tax expense in Q4 2024 puts it at a higher base of comparison, said analysts Tay Wee Kuang and Lim Siew Khee in a report published on 26 January 2026.

It will take time for UOB to return to its peak profitability recorded in FY2024, the report stated.

The Singapore-headquartered bank is also expected to report a decline in wealth management and loan-related fees arising from weaker seasonality, CGS International said.

On the other hand, UOB likely saw lower fee expenses during the quarter post aggressive credit card reward redemption by its customers in Q3 2025, ahead of the harmonisation of its credit card rewards in Thailand.

Credit costs are expected to have declined by 28 basis points in Q4 compared to Q3.

Key upside risks are lower-than-guided credit costs, which will boost investors’ confidence in the credit quality of UOB’s loan book, CGS International said.

There are also potential updates of more capital return initiatives as well as accelerated growth in net fee income, especially for wealth management.

“Downside risks: a weaker economic outlook for ASEAN resulting in comparatively swifter deterioration of asset quality compared to peers and further provisioning for its Greater China commercial real estate (CRE) portfolio,” the report said.