UOB profits down 11% to S$906m in Q1 amidst market volatility
Loan fees grew, but credit card and wealth fees recorded declines.
UOB posted S$906m in net profit for Q1, 11% lower than in Q4 and 10% lower than the same period in 2021, the bank reported in its latest performance highlight.
The group blamed the lower profits on market volatilities, with deputy chairman and CEO Wee Ee Cheong citing geopolitical tensions and uncertainties to global growth behind said volatilities.
“Despite that, our core businesses held up well, with quality loans growth, record loan-related fees, and better margins,” Cheong said.
Cheong also offered an update on the bank’s Citi asset integration, remarking that they are making “good progress.”
For Q1, UOB’s total fees dropped to S$2.4b, 3% lower than in Q4 2021. Whilst loan-related fees grew 14% to hit a new high, this was offset by a decline in credit card, wealth management, and fund management fees.
Trading and investment income saw a double-digit drop from the impact on hedges as interest rates rose, UOB said.
The bank’s non-performing loans (NPL) ratio remained the same as Q4 at 1.6%, although it was 0.1 percentage points higher than in Q1 2021.
Customer loans grew to S$320b, 3% higher than the previous quarter and 9% higher than a year ago.