United Overseas Bank (U11) H1 2025 earnings summary

Executive summary

• Operating profit for H1 2025 rose 3% year-on-year to S$4.0 billion, driven by strong fee growth and diversified engines, while net profit declined 3% to S$2.8 billion due to higher reserves and margin compression amid macro uncertainties.

• ASEAN fundamentals and long-term potential remain robust, supporting resilience despite global uncertainties and geopolitical tensions.

• The Citi acquisition is fully integrated across four ASEAN markets, expanding the customer base and driving growth in cards, wealth AUM, and deposits.

Financial highlights

• Net profit for Q2 2025 was S$1.3 billion, down 10% quarter-on-quarter and 6% year-on-year.

• Net interest income was S$4.7 billion, unchanged year-on-year; net fee income grew 11% to S$1.3 billion.

• Net interest margin narrowed to 1.91% for the quarter; exit NIM was 1.84%.

• Cost-to-income ratio improved to 43.5% for H1 2025.

• Interim dividend of S$0.85 per share declared, with a special dividend tranche paid.

Outlook and guidance

• Full-year NIM guidance reinstated at 1.85%-1.9%, factoring in expected rate cuts.

• Low single-digit loan growth and high single-digit fee growth expected for FY2025.

• Operating costs projected to remain flat; net credit costs expected at 25-30 bps, with further top-up to general provision buffer anticipated.

• Capital distribution plan of S$3 billion remains on track.