United Overseas Bank (U11) H2 2025 earnings summary

Executive summary

• Full-year 2025 operating profit was SGD 7.7 billion, down 4% year-over-year, with net profit at SGD 4.7 billion, impacted by lower net interest margin and pre-emptive provisioning.

• Diversified business model and strong ASEAN strategy supported performance amid global uncertainties and shifting supply chains.

• Fee income reached a record high of SGD 2.6 billion, up 7% year-over-year, driven by strong wealth and loan-related fees.

• 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.

• Over 50% of the SGD 3 billion capital return plan executed, including special dividends and share buybacks.

Financial highlights

• Net interest margin (NIM) for 2025 was 1.89%, with Q4 NIM at 1.84%.

• Net interest income declined 3% year-over-year to SGD 9.4 billion, but Q4 saw a 4% sequential increase.

• Fee income grew 10% year-over-year, reaching a record high across all categories.

• Expenses fell 2% year-over-year to SGD 6.2 billion; cost-to-income ratio at 44.6% in Q4.

• Customer loans grew 4% year-over-year to SGD 352 billion.

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 outlook revised down to high single digits due to more conservative loan growth expectations.

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