UOB profits up 8% to $1.12b in Q3

This was driven by a healthy loan growth of 8%.

United Overseas Bank’s (UOB) net profit climbed 8% YoY to $1.12b in Q3 from $1.04 in Q3 2018 on the back of stronger trading and investment income, according to an SGX filing.

Net interest income rose 5% YoY to $1.69b in Q3 from $1.6b in Q3 2018, driven by a healthy loan growth of 8%. Net fee and commission income rose 14% YoY to $551m as fees from wealth management, loan-related and credit cards were higher. Trading and investment income grew 67% YoY to $310m from improved customer flows and gains from investment securities.

For the first nine months of the year, net profit rose 8% YoY to $3.34b from $3.09b in 9M 2018. On a segmental basis, the group’s retail income rose 8% YoY to $3.19b, driven by higher net interest income from volume growth and improvement in deposit margin, coupled with higher treasury and wealth income. The group’s wholesale banking income grew 8% YoY to $3.1b due to high loan growth and fees from cash management and loan-related activities.

Income from high affluent customers increased 13% YoY; whilst assets under management of this segment expanded by 10% YoY to $122b, of which almost 60% was from overseas customers from Southeast Asia. noted UOB. Additionally, Cross-border income climbed 17% YoY accounted for 27% of Group Wholesale Banking’s income. Global markets income also jumped 26% YoY, driven from higher trading and investment income.