United Overseas Bank Ltd. (UOB) reported a 3% increase in operating profit for the first half of 2025, reaching S$4.0 billion, driven by a broad-based double-digit growth in fee income. However, net profit for the same period declined by 3% to S$2.8 billion, down from S$2.9 billion a year ago. This decrease in net profit was attributed to a preemptive general allowance set aside due to macroeconomic uncertainties. The bank's net interest income remained stable at S$4.7 billion, as asset growth balanced the effect of a lower net interest margin from decreasing benchmark rates. Net fee income rose by 11% year on year, boosted by higher wealth management, loan-related, and credit card fees. Other non-interest income also improved, primarily due to stronger customer-related treasury income, though it was partially offset by weaker performance in trading and liquidity management activities. The Board has declared an interim dividend of 85 cents per ordinary share, representing a payout ratio of approximately 50%. UOB's capital, funding, and liquidity positions remained robust, with a Common Equity Tier 1 Capital Adequacy Ratio of 15.3%, an average all-currency Liquidity Coverage Ratio of 141%, and a Net Stable Funding Ratio of 118%. UOB continues to operate as a leading bank in Asia, with a strong presence across 19 markets globally.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. UOB - United Overseas Bank Ltd. published the original content used to generate this news brief on August 06, 2025, and is solely responsible for the information contained therein.
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