UOB hit record S$6.1b net profit; final dividend is 85 cents per share

Higher credit card and wealth management fees pushed fee income growth in 2023.

UOB hit a record core net profit of S$6.1b in 2023, 26% higher than a year ago.

Even considering the one-off Citigroup integration costs, net profit was still a record high of S$5.7b.

With this, the bank’s board has recommended a final dividend of 85 cents per ordinary share, for a total FY2023 dividend of S$1.7 per ordinary share, or a 50% payout ratio.

The record high profit was reportedly thanks to strong income growth and an enlarged customer franchise, UOB said in a press release.

Net fee income grew 4% to S$2.2b, driven by higher credit card and wealth fees, moderated by softer loan-related fees.

Net interest income jumped 16% to S$9.7b, as margin expanded 23 basis points and with UOB logging a 2% loan growth during the year.

The non-performing loan (NPL) ratio is 1.5% for 2023.

UOB’s wholesale banking income grew 14% to S$7.1b, led by strong growth in its transaction banking business– which now accounts for more than half of UOB’s wholesale banking income, the bank said.

Cross-border income rose 9% from 2022 levels.

Retail income rose 36% to S$5.5b, with UOB seeing about 1 million new-to-bank customers in 2023. More than half of these were acquired digitally, UOB said.

With this, UOB’s retail customer count has surpassed 8 million as of end-2023.

Credit card fees surged 66% to a new high of S$382m during the year.

Wealth management income rose 13%, thanks to a growing bancassurance market share and demand for fixed income products, UOB said.

Affluent customers of UOB saw their assets grow to S$176b, thanks to “strong net new money inflows” of S$22b.