UOB maintains profitability despite possible slower loan growth

Management sees demand for hedging, particularly for foreign exchange.

United Overseas Bank (UOB) is expected to remain profitable despite an expected slowdown in economic growth, which in turn will weigh on loan growth and trade loans.

Management expects stress on asset quality to be less intense compared with the COVID-19 pandemic, said UOB Kay Hian analyst Jonathan Koh.

“Management sees growth in demand for hedging, particularly for foreign exchange,” Koh said.

The Singapore-based bank should be able to manage the direct impact from reciprocal tariffs.

Trade loans accounted for 10% of UOB’s total loans, of which 20% to 30% is derived from companies exporting to the US. Corporate export to the US market (10 to 25% of sales) accounted for just 2% of its total loans.

“Thus, management assessed that the direct impact of reciprocal tariffs on the first order will be manageable. Management is more concerned about the second-order impact from a slowdown in business investment and domestic consumption,” Koh said.

Follow the link s for more news on

United Overseas Bank

UOB

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit