UOB Group first-quarter earnings up 4.9% to record S$722m

Thanks to strong fee income, loan growth.

In a release, the UOB Group reported net earnings for the first quarter of 2013 (1Q13) rose 3.8% from the previous quarter and 4.9% year-on-year to a new record of S$722 million.

Fee income increased 16.9% quarter-on-quarter to reach a new high of S$453 million in 1Q13. Loans growth was strong, increasing 7.4% over last quarter to S$167 billion in 1Q13.

Credit quality on the overall loans portfolio remained sound with improvement in the non-performing loans (NPL) ratio of 1.3% as the Group continued to focus on disciplined growth.

Here's more from UOB on what pushed income to record levels:

Total income for the Group increased 5.0% over the fourth quarter of 2012 (4Q12) to S$1.67 billion, driven by robust fee and commission income as business activities in lending, capital markets, wealth management and fund management continued to perform well.

The record fee and commission income, along with stronger loans volume, mitigated the effects of tight interest margins. Net interest income was stable at S$964 million in 1Q13 with the net interest margin lower at 1.70% as yields declined. Trading and investment income increased 7.4% to S$158 million as a result of favourable market sentiment. Consequently, total non-interest income came in at S$708 million with the non-interest income ratio at 42.4%.