United Overseas Bank (U11) investor relations material

Executive summary

• Net profit for 2Q26 rose 10% year-over-year to S$1.5 billion, and for 1H26 increased 3% year-over-year to S$2.9 billion, reflecting resilience amid macroeconomic uncertainties and market volatility.

• Performance was supported by a strong regional franchise in ASEAN, with diversified income streams and disciplined cost management.

• Wealth management income achieved double-digit growth, offsetting softer investment banking fees and margin compression.

• Strategic partnership and asset management sale to Allianz expected to yield a gain of SGD 330 million and 14 bps CET1 uplift.

• Interim dividend of 88 cents per share declared, maintaining a 50% payout ratio.

Financial highlights

• Net interest income for 1H26 was $4.62 billion, down 3% year-over-year due to margin compression; net fee income for 1H26 was $1.3 billion, down 2% year-over-year, but wealth fees hit record levels in 2Q26.

• Trading and investment income for 2Q26 was $379 million, down 6% sequentially and 8% year-over-year.

• Total income for 1H26 was $7.02 billion, down 1% year-over-year; operating profit for 1H26 was $3.87 billion, down 4% year-over-year.

• Allowance for credit losses declined 27% year-over-year, with total credit costs at 28 bps for Q2 and 27 bps for H1.

• Cost-to-income ratio for 1H26 at 45.2%, up from 43.5% a year ago.

Outlook and guidance

• 2026 outlook projects flat earnings versus 2025, low single-digit growth in loans and fee income, full-year NIM of 1.75%-1.8%, low single-digit operating cost increase, and credit costs of 25-30 bps.

• SORA expected to trend higher in H2, supporting NIM.

• Committed to completing SGD 2 billion capital return plan by end-2027.

• Continued investment in capabilities to drive long-term value for customers and shareholders.