UOB profit up 5.6% to $525mn

The lender warns of riskier times ahead for Asia amidst global economic uncertainties and volatility.

Singapore's United Overseas Bank Ltd, the city-state's third-biggest lender, on Friday posted an increase in net profit, but warned of liquidity risks for Asia amid uncertainties in the global economy.

Net profit in the second quarter grew 5.6 per cent year-on-year to 636 million Singapore dollars ($525 million), up from 602 million Singapore dollars ($500.65 million) a year earlier, the bank said in a statement.

Net interest income, the difference between the interest the bank collects from debtors and the interest it pays out on deposits, was up 3.3 per cent year-on-year in the quarter, reaching 913 million Singapore dollars ($759.21 million), it said.

However, chief executive officer Wee Ee Cheong warned of downside risks for Asia from the global economic situation.

'We expect global uncertainties and volatility to persist from ongoing events in the West, including the recent US credit downgrade,' he said.

'The impact on Asia will likely be a sharp pull-back in global liquidity and credit,' he said.

UOB was Singapore's third bank to post quarterly figures.

View the full story in Monsters and Critics.