United Overseas Bank (UOB) recorded fourth-quarter net profit of S$1.41 billion for the three months ended Dec. 31, falling short of the S$1.45 billion consensus compiled by Bloomberg and down from S$1.52 billion in the same period a year earlier.
The quarterly outcome marked an improvement from the immediate prior quarter - when results were dented by a large pre-emptive provision - but remained 7% below last year’s fourth-quarter level. Management cited a pullback in trading and investment gains from the unusually elevated levels recorded a year earlier as a key drag on non-interest income.
Operating performance and revenue mix
Operating profit for the quarter fell 5% year on year to S$1.76 billion, reflecting the softer non-interest income profile as trading and investment gains normalized. Net interest income was broadly unchanged at S$2.35 billion, supported by modest loan growth and improved funding costs. Net fee income increased 10% from the prior year to S$625 million, helped by higher card and wealth management fees.
Credit and asset quality
Credit costs eased following the third-quarter provisioning, with total allowances reduced to S$113 million and a loan credit cost of 19 basis points. Asset quality remained stable during the period, with the non-performing loan ratio reported at 1.5%.
On a full-year basis, UOB posted net profit of S$4.68 billion, down 23% after the earlier provisioning. The board has proposed a final dividend of 71 Singapore cents per share, bringing the total payout for FY25 to S$1.56 per share.
Overall, the quarter highlighted a mix of resilience in core lending and fee-based activities alongside volatility in trading-related income and continued margin pressures, leaving the bank with a quarterly profit outcome that marginally missed market expectations.