UOB Q3 net profit up 18.7% to record $866 million

SINGAPORE - United Overseas Bank (UOB) has logged a new high in net earnings for the third quarter on the back of broad-bsed increase in operating income.

Net profit for the three months ended Sept 30 rose 18.7 per cent compared to the same period last year to $866 million.

Earnings were boosted by increases in both net interest income and non-interest income.

Net interest income increased 10.5 per cent to $1.2 billion, as a result of higher average loan volume in Singapore and in the region.

Its net interest margin came in at 1.71 per cent, unchanged from last year and the previous quarter.

Non-interest income, meanwhile, grew 32.1 per cent to $816 million as it derived higher contributions from its fund and wealth management business, as well as investment banking.

Operating expenses however, rose 11.9 per cent to $800 million due to higher staff costs and revenue-related expenses.

Non-performing loans (NPL) went up 8.6 per cent to $2.3 billion while the NPL ratio stood at 1.2 per cent, unchanged from last year or the previous quarter.

UOB chief executive Wee Ee Cheong said in a statement: "We achieved a good set of results, with our continued discipline in balance sheet management and investment in fee-generating capabilities.

"The recent award of a branch banking licence in Myanmar reinforces our commitment to the region and our investments in serving our customers' needs."