UOB’s FY15 net profits dip 1.2% to $3.21b

Due to a higher tax provisions write-back in FY14.

UOB reported net earnings for 4Q15 of $788m, reflecting no change YoY and an 8% tumble QoQ. This resulted to net profits of around $3.21b, which is 1.2% lower YoY on back of FY14 registering a higher write-back of tax provisions.

According to a report by OCBC, net interest margin inched up to 1.79% during the quarter, from 1.69% in 4Q14 and 1.77% in 3Q15. Allowances for credit and other losses also jumped 15% YoY or 19% QoQ to $109m in Q4.

UOB asserts that its exposure in China rached $21.1b, or about 6.6 of its total assets. Of this, 65% is trade-related with bank counterparties and around 75% is with the top five domestic banks and policy banks. The bank’s commodities exposure amounted to $21b, or around 10% of total loans or 6.6% of total assets.

Company deputy chairman and CEO Wee Ee Cheong stated that given the volatility and uncertainty expected in financial markets in 2016, UOB is ensuring a resilient balance sheet and pursuing sustainable growth.

“Times like these present opportunities for long-term players such as UOB. We remain confident of the region’s underlying prospects and will continue to invest in our capabilities and selectively grow our franchise for the long term,” stated Wee.