UOB’s net profit climbs to $3.42b YTD amidst fee income growth

The quarter’s earnings surged 16.5% YoY.

UOB Group (UOB)’s third quarter (Q3 2024) net profit increased by 16.5% year-on-year (YoY) to $1.22b (S$1.6b), whilst year-to-date (YTD) earnings also climbed 5% YoY to $3.42b (S$4.5b).

YTD earnings per share increased by 5.7% YoY to $2.70 (S$3.55), whilst the quarter’s EPS jumped 13.1% YoY to $2.87 (S$3.78).

Net fee income rose 7% YoY to $478.8m (S$630m), driven primarily by growth in wealth management fees. Net interest income increased by 1% to $1.9b (S$2.5b), with loan growth at 5%.

Other non-interest income surged 70% YoY to $565.44m (S$744m), benefiting from record trading and investment income as customer-related treasury income grew strongly. Credit costs for the quarter rose to 34 basis points due to the Thailand retail portfolio, following the integration of Citi's assets.

However, full-year credit costs are expected to stay within the 25 to 30 basis points guidance.

UOB's asset quality remained stable, with the non-performing loan ratio steady at 1.5%, whilst its balance sheet maintained ample liquidity and a strengthened Common Equity Tier 1 ratio of 15.5%.

For the first nine months of 2024, core net profit rose 3% to $3.57b (S$4.7b), driven by strong fee, trading, and investment income, along with reduced credit allowances. Net profit increased by 5% to $3.42b (S$4.5b) after adjusting for one-off Citi integration expenses.

Net interest income for the period dipped 1% YoY to $5.47b (S$7.2b) due to a lower net interest margin, offset by 5% loan growth.

Net fee income rose 10% to $1.37b (S$1.8b), attributed to wealth, loan-related, and credit card fees.

($1.00 = S$1.32)