UOB posts 17% rise in Q3 profit on loan growth, lower allowances

United Overseas Bank's total expenses for the quarter rose 12 per cent from a year ago to $1.01 billion, mainly from higher staff costs and IT-related expenses.
United Overseas Bank's total expenses for the quarter rose 12 per cent from a year ago to $1.01 billion, mainly from higher staff costs and IT-related expenses. PHOTO: ST FILE

SINGAPORE - United Overseas Bank has posted a net profit of $1.04 billion in the third quarter, up 17 per cent from $883 million a year ago, as net interest income rose 14 per cent to $1.6 billion, driven by healthy loan growth and a net interest margin uplift of 2 basis points.

Net fee and commission income rose 2 per cent to $484 million due to higher loan-related, credit card and trade-related fees. Other non-interest income fell 13 per cent to $244 million in the absence of stronger gains from investment securities recorded in the same year-ago period.

Total expenses for the quarter rose 12 per cent from a year ago to $1.01 billion, mainly from higher staff costs and IT-related expenses. The cost-to-income ratio for the quarter was 43.4 per cent.

Total allowances more than halved to $95 million, largely due to high allowances provided for impaired loans from the oil and gas and shipping sectors in the third quarter last year.