UOB posts steady first-quarter profit as resilient core franchise offsets rate pressures

UOB ( (SG:U11) ) has provided an update.

United Overseas Bank reported a steady first-quarter performance, with net profit of $1.4 billion supported by resilient retail, wholesale and markets franchises despite lower benchmark rates and market volatility. Net interest margin held at 1.82% through active funding cost management, while asset quality remained stable with a 1.5% NPL ratio, adequate provision buffers and total credit cost guidance kept at 25 to 30 basis points.

Group Retail delivered growth in low-cost CASA deposits, wealth income and card billings, though profit before tax was pressured by lower rates and competition, while portfolio quality stayed healthy. Group Wholesale Banking saw double-digit growth in trade loans, CASA and customer treasury income but lower overall income due to a softer rate environment, as Global Markets posted record-high income, and the bank maintained a roughly 50% dividend payout and continued progress on its $3 billion capital return programme.

The most recent analyst rating on (SG:U11) stock is a Hold with a S$35.70 price target. To see the full list of analyst forecasts on UOB stock, see the SG:U11 Stock Forecast page.

More about UOB

United Overseas Bank is a Singapore-headquartered financial institution operating in retail and wholesale banking as well as global markets. The group offers deposit and lending products, wealth management, cards, transaction banking and treasury services, with a strong focus on Asia and a diversified funding base across consumer and corporate clients.

Average Trading Volume: 3,139,474

Technical Sentiment Signal: Strong Buy

Current Market Cap: S$60.38B

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