UOB Q4 Net Profit Misses Estimates as Trading Income Slips, FY25 Earnings Down 23%

Singapore’s United Overseas Bank (SGX: UOBH) reported fourth-quarter earnings that came in slightly below market expectations, as softer trading income and margin pressure offset steady loan growth and stronger fee contributions. The bank’s performance reflects a normalization in non-interest income following stronger gains a year earlier.

For the three months ended December 31, UOB posted a net profit of S$1.41 billion, down 7% from S$1.52 billion a year ago and below the Bloomberg consensus estimate of S$1.45 billion. However, earnings rebounded sharply from the previous quarter, which had been impacted by a significant pre-emptive provision.

Quarterly operating profit declined 5% year on year to S$1.76 billion, largely due to weaker trading and investment income. Net interest income remained broadly stable at S$2.35 billion, supported by modest loan growth and improved funding costs amid evolving interest rate conditions. Meanwhile, net fee income rose 10% to S$625 million, driven by higher card fees and solid wealth management activity, highlighting continued strength in core banking operations.

Credit costs improved following elevated provisions in the third quarter. Total allowances fell to S$113 million, with loan credit cost easing to 19 basis points. Asset quality remained resilient, as reflected in a stable non-performing loan ratio of 1.5%.

For the full financial year FY25, UOB recorded net profit of S$4.68 billion, representing a 23% decline due to earlier provisioning. Despite the earnings dip, the bank proposed a final dividend of 71 Singapore cents per share, bringing total FY25 dividends to S$1.56 per share.

UOB’s latest financial results underscore the challenges facing Singapore banks amid moderating trading income and tighter margins, while loan growth, fee income expansion, and stable asset quality continue to provide underlying support.