Sporeshare
02-24 14:16

$UOB(U11.SI)$  

 UOB Group reported an operating profit of S$7.7 billion for the

financial year ended 31 December 2025 (FY25), driven by strong fee momentum across our

wholesale banking and retail banking businesses. Net profit for FY25 moderated 23% to S$4.7 billion from the previous year, largely due to the pre-emptive general allowances that the Group

proactively set aside in the third quarter to strengthen provision coverage amid growing macroeconomic uncertainties.

The Board recommends the payment of a final dividend of 71 cents per ordinary share. Together with the interim dividend of 85 cents per ordinary share, the total dividend for FY25 will be S$1.56per ordinary share, representing a payout ratio of approximately 50%. In recognising the final dividends, the pre-emptive general provision set aside in the third quarter was excluded from the

final dividend calculation. In addition to the regular dividends, the Group returned surplus capitalto shareholders through a special dividend of 50 cents per ordinary share, which was paid over two tranches during 2025.

Net interest income for FY25 eased 3% year on year. Although loan growth was healthy at 4%,

margin pressures from lower benchmark rates offset the growth momentum. Net fee income grew

7% to a record high of S$2.6 billion, driven by a double-digit growth in wealth management and

loan-related fees. While trading income and liquidity management activities normalised from last

year’s exceptional level, customer-related treasury income reached a new record high, backed by

strong hedging and investment demand.

Asset quality remained resilient with non-performing loan ratio stable at 1.5%. Following the pre-

emptive general provision set aside in the third quarter, credit costs for the fourth quarter improved

to 19 basis points, as total allowances returned to normalised levels.

https://sporeshare.blogspot.com/2026/02/uob-bank.html

UOB Drops 4% on Profit Decline! Can OCBC Buck the Trend?
UOB’s Q4 net profit fell 7% to S$1.41B, missing estimates, as lower rates compressed margins. FY2025 profit dropped 23% to S$4.7B, partly due to nearly S$1B in provisions. The bank trimmed its 2026 fee growth outlook to high single digits amid macro uncertainty. Yet across its four core Asean markets (Indonesia, Malaysia, Thailand, Vietnam), total income rose 5%, outperforming the group’s 3% decline. Management remains upbeat on intra-regional trade resilience despite fresh US tariffs. Prolonged margin pressure in a lower-rate cycle? What to focus for OCBC?
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