United Overseas Bank reported first-quarter 2025 net profit of SGD 1.49 billion, broadly flat year-on-year and below analysts' expectations, as the Singapore-based lender reported net interest margin compression and record fee income, according to results published on 7 May 2025.
Operating profit rose year-on-year. The divergence between operating profit growth and flat net profit was largely explained by elevated credit loss allowances recognised during the quarter.
FEE INCOME REACHES RECORD
Net fee income reached a record SGD 694 million for the quarter, up 20% year-on-year, driven by wealth management, fund distribution and loan-related fees.
MARGIN, GUIDANCE AND CAPITAL
Net interest margin came under pressure during the quarter. Management paused its 2025 guidance, citing uncertainty from US tariffs.
The Common Equity Tier 1 ratio stood at 15.5% at the end of March 2025.