UOB operating profits up to S$3.33bln on stable core franchise

Bad news though is the 38.9% rise in impairment charges which negated the bank's strong operating performance.

The impairment charges worth S$1,121 million included a collective impairment of S$506 million set aside to provide a strong buffer for uncertainties.

Meanwhile higher bonus accruals pushed staff costs to rise 3.1% to S$1,116 million causing total operating expenses to increase 1.2% to S$2,074 million. The overhead income ratio however was at 38.4% with total operating income remaining resilient at S$5,405 million.

Mr Wee Ee Cheong, the UOB Group's Deputy Chairman and Chief Executive Officer, said, "The global economy appears to be getting back on its feet. However, 2010 will be volatile as the de-leveraging process takes time to work through. Asia is well-positioned for the post-crisis era, barring major shocks in the global system."