United Overseas Bank (U11) H2 2025 earnings summary

Executive summary

• Full-year 2025 net profit was SGD 4.7 billion, down 23% year-over-year, with operating profit at SGD 7.7 billion, supported by a diversified business model and strong ASEAN strategy.

• Fee income reached a record high (SGD 3.5 billion/$2.6 billion), offsetting lower net interest margins and higher pre-emptive provisioning.

• Board recommended a final dividend of SGD 0.71 per share, total full-year dividend SGD 1.56 per share, plus a special dividend of SGD 0.50 per share.

• Continued focus on digitalization, regional integration, and capital return to shareholders.

• 4Q25 net profit rebounded to SGD 1.4 billion, mainly due to lower credit costs.

Financial highlights

• Net interest margin for 2025 was 1.89%, with Q4 at 1.84%; net interest income down 3% year-over-year.

• Fee income grew 10% year-over-year to a record high; gross fee income SGD 3.5 billion/$2.6 billion.

• Expenses fell 2% year-over-year; cost-to-income ratio increased to 44.6% in Q4 due to lower income.

• NPL ratio stable at 1.5%; NPA coverage at 97% (254% with collateral).

• CET1 ratio at 15.1%, LCR at 147%, NSFR at 116%, indicating strong capital and liquidity positions.

Outlook and guidance

• 2026 guidance: low single-digit loan growth, full-year NIM of 1.75%-1.8%, high single-digit fee growth, low single-digit operating cost growth, total credit cost of 25-30 basis points.

• Fee income growth revised down to high single digits due to more conservative loan growth outlook.

• Confident in ASEAN growth trajectory, with focus on trade, connectivity, and less capital-intensive activities.

• Interest rates expected to stabilize, with potential for one rate cut.