The third-largest bank by assets, UOB, reported S$ 1.49 billion ( US$ 1.16 billion ) in net profit, which was unchanged from the prior quarter, supported by report fee income and strong mortgage growth.
This was slightly below the mean estimate of two analysts polled by LSEG, who estimated around S$ 1.5 billion.
Analysts at CGS International, Tay Wee Kuang and Lim Siew Khee, said they do not anticipate major changes given the bank’s resilient operating efficiency in the first quarter despite the suspension of UOB’s 2025 advice.
In its third quarter results, UOB projected large single-digit product development and double-digit price growth with credit costs of 25 to 30 basis points for 2025.
Wee claimed that the Association of Southeast Asian Nations ( ASEAN )’s long-term fundamentals remained attractive despite the fact that the current uncertainties were not as bad as they were during the COVID-19 pandemic.
We anticipate that ASEAN and the rest of the world’s moves will continue to grow as nations look for new ways to prosper, he said.
Wee also cited additional opportunities in the face of uncertainty, such as growing customer demand for trading and a strong pipeline of infrastructure financing.
As UOB set off an extra pre-emptive income to increase cover for potential payment losses brought on by growing economic uncertainties, first-quarter credit costs increased to 35 basis points. Wee noted that this is in line with COVID-19’s 57 basis items.
Results are expected to be released on May 8 and 9, between, from larger competitors DBS Group and OCBC.