UOB's Net Earnings Rise, Helped By Wealth Results

Editorial Staff

4 November 2019

Singapore-based said it logged record net earnings of S$3.34 billion ($2.46 billion) in the nine months to end-September this year, a rise of 8 per cent on the same period a year earlier. Strong wealth management earnings helped boost the result, the bank said last Friday.

Total income rose by 10% to a new high of S$7.60 billion, led by broad-based loan growth, higher trading and investment income and steady fee growth. Return on equity increased from 11.6 per cent a year ago to 11.9 per cent, UOB said.

Net fee and commission income increased by 4 per cent to S$1.56 billion, driven by wealth management flows, higher loan-related and credit cards fees, moderated by lower fund management fees. Other non-interest income grew by 41 per cent to S$1.11 billion with trading and investment income rising by 52 per cent to S$892 million from higher customer flows and gains from investment securities.

Elaborating on its nine-month figures, UOB said that income from affluent customers rose by 13 per cent year-on-year, while assets under management of this segment expanded by 10 per cent to S$122 billion, of which close to 60 per cent was from overseas customers across UOB’s network of wealth management centres in Southeast Asia

In the third quarter, UOB registered net earnings of S$1.12 billion, 8 per cent higher than the third quarter of 2018 on the back of stronger client franchise income as well as trading and investment income. Net earnings slipped by 4 per cent on a year earlier.

The balance sheet position remained sound against the uncertain global backdrop, UOB said. Loan-to-deposit ratio held stable at 89.3 per cent; the Common Equity Tier 1 ratio held at 13.7 per cent.