UOB blames these 2 reasons for lower net interest margin

NIMs plummeted 19bps to 1.76%.

According to Phillip Securities, UOB’s 4Q12 earnings were above expectations, due largely to high non-trading income and lower taxes, mitigated by higher expenses and loan provisions.

Fees and commission income increased marginally q-q on higher Fund management fees.

Here's more from Phillip Securities:

Higher loan allowances were made for a specific loan, but overall portfolio remains healthy. A final year dividend of S $0.40 and a special dividend of S $0.10 were declared.

NIMS were down 8bp q-q, 19 bps y-y to 1.76%. Management attribute decline to 1) Drawdown of previously committed mortgage loans, which are low interest bearing.

2) Shortening of loans duration, causing an estimated 5-6 bps NIMs decline. Loans duration was shortened to reduce risk, as flat yield curve was unattractive.