The bottom-line results were aided by growth in areas such as wealth management fees, UOB said.

United Overseas Bank yesterday reported that net profit for 2024 rose 6 per cent to a record S$6 billion from a year ago.

Net interest income was stable at S$9.7 billion ($7.23 billion) as loan growth of 5 per cent offset the effect of net interest margin contraction from interest rate movements, UOB said in a statement. 

Net fee income grew 7 per cent year-on-year to S$2.4 billion, led by double-digit growth in wealth management fees from improved investor sentiments, alongside stronger card fees on an enlarged regional franchise, and higher loan fees as lending and capital market activities picked up.

Other noninterest income rose by 10 per cent to S$2.2 billion, driven by robust customer-related treasury income from increased retail bond sales and hedging demands, as well as performance from trading and liquidity management activities, it said. 

Net profit for the fourth quarter of 2024 fell 5 per cent lower at S$1.5 billion. Net profit excluding one-off expenses was also at $1.5 billion, as Citi integration costs tapered off. 

In late 2022 and early 2023, UOB closed the acquisition of Citi’s consumer business (wealth management and retail deposits) in Malaysia, Thailand, and Vietnam. It also agreed to buy the US bank’s consumer businesses in Indonesia, with the transaction closing in 2023.

UOB said it had a Common Equity Tier 1 Capital Adequacy Ratio at 15.5 per cent for the quarter.

The bank said that it recommends the payment of a final dividend of 92 cents per ordinary share. Together with the interim dividend of 88 cents per ordinary share, the total dividend for the 2024 full year will be S$1.80 per ordinary share, equating to a payout ratio of approximately 50 per cent. UOB also said it had a S$3 billion package to distribute surplus capital over the next three years. The package comprises special dividends and share buybacks.