UOB net profit up 8% to $2.2b in H1

Profit growth was boosted by wholesale banking as income rose 9% to $2.06b.

United Overseas Bank’s (UOB) net profit climbed 8% YoY to $2.2b in H1 from $2.06b in 2018 as all of its business segments’ income rose, according to an SGX filing.

Total income rose 9% to a new high of $4.99b, lifted by strong loan growth and higher trading and investment income. On a segmental basis, its group retail segment registered 7% income growth to $2.07b. The group wholesale banking’s income rose 9% to $2.06b, led by volume growth and stronger contribution from the investment banking and treasury businesses, whilst the global markets business income grew 4% to $283m, mainly from higher trading and investment income.

UOB’s net interest income grew 8% to $3.24b, led by strong loan growth of 9%. Net fee and commission income remained flat at $1.01b, as higher fees from loan-related and credit cards were partly moderated by lower fund management fees. Other non-interest income rose 36% to $743m, thanks to stronger gains in trading income and investments.

Its loan-to-deposit ratio came at 88.5% as of 30 June. Gross loans and deposits rose 9% and 6% YoY to $273b and $305b respectively.

Also read: UOB profit up 8% to $1.05b in Q1

In terms of profits, its whole banking business delivered pre-tax profit growth to $1.47b in H1. Its global markets segment led the advance at 24% YoY to $165m as its expenses declined. The group retail segment saw its pre-tax profit inch up 5% YoY to $970m in the same period.

Its interim dividend is now at $0.55 apiece.

Meanwhile, its Q2 profits also edged up 8% YoY to $1.17b as compared to $1.08b in 2018, driven by improvement in both interest and non-interest income. Its net interest income inched up 7% to $1.65b as gross loans grew 9% YoY.