UOB’s net profit down 3% to S$2.83b in H1 2025

Interim dividend is 85 cents per ordinary share.

UOB’s net profit fell 3% to S$2.83b (US$2.2b) in the first six months of 2025 compared to the same period last year, its latest financial statement showed.

This was due to a pre-emptive general allowance set aside by the bank’s risk management measures on the back of macroeconomic uncertainties, the Singaporean bank said in a statement.

Operating profit rose 3% to S$4b (US$3.11b) during the period, underpinned by broad-based double-digit growth in fee income.

Interim dividend of 85 cents per ordinary share during the period, representing a payout ratio of approximately 50%.

The second tranche of the 50 cents special dividend will also be paid out to shareholders.

Net interest income was flat at S$4.74b (US$3.69b) in H1, as growth in loan volume reportedly helped to cushion the impact of margin compression from lower benchmark rates.

Other non-interest inched up 1% to nearly S$1.05b (US$817.55m).

Net fee income rose 11% to S$1.33b (US$1.04b) across wealth management, loan-related and credit cards.

Cost-to-income ratio improved from 44.4% a year ago to 43.5%, on tighter cost management.

Non-performing loan ratio is at 1.6% in H1 2025, whilst credit costs stood at 34 basis points (bp), which UOB said was due to higher specific allowance and pre-emptive general provision set aside.

Wholesale banking drops; wealth management grew
Wholesale banking profit before tax dropped 12% in H1 compared to H1 2024 on lower interest rates and competition for quality assets. Transaction banking represented nearly half of total wholesale banking income despite the uncertainties from the US tariffs, UOB said.

Investment banking delivered record fees whilst customer-related treasury income registered double-digit growth.

Group retail banking reported a profit before tax of S$1.1b for 1H25, up 11%, as growth in CASA, wealth and cards countered the income pressures from lower rates and market competition.

Retail deposits crossed the S$200b mark for the first time.

Wealth management income grew 15%, driven by clients’ conversion of deposits into invested assets under management (AUM).

High net-worth AUM continued to build momentum with net new money inflows at S$3b in the second quarter of 2025. Credit card income increased 5%, along with double-digit growth in card billings.