Singapore’s United Overseas Bank (OTC: UOVEY) reported a 9% year-on-year rise in Q4 net profit, surpassing analyst expectations. Net profit climbed to S$1.52 billion ($1.13 billion), driven by higher net interest income and loan growth, exceeding the S$1.46 billion estimate from analysts polled by LSEG.
UOB maintained its 2025 guidance, expecting a cost-to-income ratio around 42%, at the upper end of its previous 41%-42% range. CEO Wee Ee Cheong highlighted the bank’s strategic investments in regional platforms, projecting continued revenue growth.
The bank announced a S$3 billion ($2.24 billion) capital return plan, including a special dividend of 50 Singapore cents per share in 2025 and a S$2 billion share buyback program. Additionally, UOB declared a final dividend of 92 Singapore cents per share for 2024, up from 85 Singapore cents a year ago.
Net interest margin (NIM), a key profitability indicator, slightly narrowed to 2.00% in Q4 from 2.02% a year earlier. Despite strong Q4 results, analysts cautioned that potential global economic challenges, including U.S. trade policies, could impact growth in 2025.
UOB’s earnings follow DBS Group’s (OTC: DBSDY) strong Q4 results, which included a dividend capital return plan that pushed its shares to record highs. Rival Oversea-Chinese Banking Corporation is set to release its financial results on February 26.


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