UOB net profit swells by 46% QoQ

The group reported $1b net profit for the first quarter of 2021.

UOB Group had a strong start for 2021 as net profit grew by 46% to $1b QoQ compared to $688m in Q4 2020.

The group attributed the growth to robust customer franchise growth amidst recovery and improving market sentiments coupled with lower credit allowance.

Net profit also grew by 18% YoY from $855m in Q1 2020.

Meanwhile UOB also reported that net interest income dipped by 4% YoY as loan growth was more offset by the impact of rate cuts on margins across the region. Fee income was 24% higher, led by wealth, loan-related and fund management fees. Trading and investment income increased by 10%, largely due to higher net gains from investment securities.

“The group’s liquidity and funding positions remained robust with this quarter’s average all-currency liquidity coverage ratio at 139% and net stable funding ratio at 121%, well above the minimum regulatory requirements. Loan-to-deposit ratio was healthy at 87%. While the Common Equity Tier 1 (CET1) ratio eased to 14.3% due to strong loan growth, the group remains well positioned to continue supporting customers with outlook cautiously improving,” UOB said.