UOB’s net profit falls 23% to $3.69b in 2025 as allowances double

The bank raised provisions by S$1.5b, with higher allowances in Singapore and China.

United Overseas Bank (UOB) saw its net profit fall 23% year-on-year (YoY) to $3.69b (S$4.68b) as it made an additional $1.18b (S$1.5b) in allowances.

The Singapore-based bank raised its total allowances to over $1.62b (S$2.04b) in 2025, more than double to $730.92m (S$926m) it set aside in 2024.

General allowance is S$856m in 2025, whilst specific allowance on loans rose 7% YoY to nearly S$1.14b. 

Singapore and Greater China saw the highest increase in loan allowances. UOB set aside $119.98m (S$152m) for Singapore in 2025, compared to just $11.05m (S$14m) in 2024. The bank made specific loan allowances of $278.64m (S$353m) for Greater China, from $159.44m (S$202m) a year earlier.

Allowances to Thailand and Malaysia fell. Thailand’s allowances remained the second-highest overall, at $267.58m (S$339m).

In its bourse filing, UOB said that it made the decision to strengthen coverage through pre-emptive provisioning in light of evolving macroeconomic conditions and sector-specific challenges.

Net interest income fell 3% YoY to $7.38b (S$9.35b) in 2025, whilst net fee and interest income rose 7% YoY to $2.03b ($2.57b).

Operating expenses were slightly lower, at $4.86m (S$6.16m) or a 2% YoY decline.

Operating profit was $6.08b (S$7.7b), easing from 2024’s record high against a backdrop of margin compression and heightened market volatility, UOB said.

Gross customer loans rose 4% to $277.99b (S$352.18b), whilst deposits rose 5% to $336.21b (S$425.94b). Total assets expanded 6% to $451.53m (S$572.06m).

Net interest margin (NIM) is 1.89% in 2025, lower than the 2.03% in 2024. The nonperforming loan (NPL) ratio remained the same, at 1.5%.

Common equity tier 1 (CET1) ratio is 15.1% in 2025, from 15.5% in 2024.

Earnings per share is S$2.76 basic and S$2.75 diluted.

(US$1 = S$1.27)