UOB, Southeast Asia's third-largest bank by assets, reported S$1.49 billion (US$1.16 billion) in net profit, unchanged from the year-ago quarter, supported by record fee income and robust loan growth.
This was slightly below the mean estimate of around S$1.5 billion of two analysts polled by LSEG.
Although UOB's 2025 guidance was suspended, CGS International's analysts Tay Wee Kuang and Lim Siew Khee said they do not expect drastic revisions given the bank's resilient operational performance in the first quarter.
UOB projected high single-digit loan growth, double-digit fee growth with credit costs at 25 to 30 basis points for 2025 during its fourth quarter results.
Wee said the current uncertainties were not as bad as during the COVID-19 pandemic and the long-term fundamentals of the Association of Southeast Asian Nations (ASEAN) remained attractive.
"We expect flows within ASEAN and between ASEAN and the rest of the world to continue growing as countries seek new ways to prosper," he said.
Wee also highlighted other opportunities amid uncertainties, including growing client demand for hedging and a healthy pipeline of infrastructure financing.
First-quarter credit costs rose to 35 basis points as UOB set aside an additional pre-emptive allowance to boost coverage for potential loan losses due to growing macroeconomic uncertainties. This compares to 57 basis points during COVID-19, Wee added.
Larger rivals DBS Group and OCBC are scheduled to report results on May 8 and 9 respectively.
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This was slightly below the mean estimate of around S$1.5 billion of two analysts polled by LSEG.
Although UOB's 2025 guidance was suspended, CGS International's analysts Tay Wee Kuang and Lim Siew Khee said they do not expect drastic revisions given the bank's resilient operational performance in the first quarter.
UOB projected high single-digit loan growth, double-digit fee growth with credit costs at 25 to 30 basis points for 2025 during its fourth quarter results.
Wee said the current uncertainties were not as bad as during the COVID-19 pandemic and the long-term fundamentals of the Association of Southeast Asian Nations (ASEAN) remained attractive.
"We expect flows within ASEAN and between ASEAN and the rest of the world to continue growing as countries seek new ways to prosper," he said.
Wee also highlighted other opportunities amid uncertainties, including growing client demand for hedging and a healthy pipeline of infrastructure financing.
First-quarter credit costs rose to 35 basis points as UOB set aside an additional pre-emptive allowance to boost coverage for potential loan losses due to growing macroeconomic uncertainties. This compares to 57 basis points during COVID-19, Wee added.
Larger rivals DBS Group and OCBC are scheduled to report results on May 8 and 9 respectively.
Continue reading...