United Overseas Bank (U11) Q1 2025 TU earnings summary

Executive summary

• Net profit for Q1 2025 was SGD 1.5 billion (S$1.5b), stable year-over-year, supported by broad-based growth across lending, fees, and trading income, with diversified income streams and robust loan growth.

• Maintained strong balance sheet, capital, and liquidity positions to navigate global uncertainties, including U.S. tariffs and supply chain shifts.

• Continued focus on diversified client segments and product mixes, with healthy demand across sectors and geographies.

• Recognized with multiple industry awards for private banking, SME banking, and regional excellence.

• Trading and investment income rose 27% quarter-on-quarter due to stronger customer treasury income and trading performance.

Financial highlights

• Net profit stable year-on-year at SGD 1.5 billion; ROE at 12.3%; net interest income S$2.4b (+2% YoY); net fee income reached a record S$694m, up 20% YoY.

• Operating profit was S$2.1 billion, up 7% year-over-year and 11% quarter-over-quarter.

• Cost-to-income ratio improved to 42.6% from 44.6% a year ago.

• Treasury and investment income grew 27% quarter-on-quarter; trading income supported by strong client activity.

• Total credit cost increased to 35 basis points due to higher general allowances.

Outlook and guidance

• Guidance suspended due to fluid external environment; will resume when visibility improves; S$3b capital distribution plan remains on track.

• Loan and fee income growth projections under review; not yet revised but likely to be updated as situation evolves.

• China-ASEAN and intra-ASEAN trade flows remain active, with growing client demand for hedging and a healthy infrastructure financing pipeline.

• Anticipates a slowdown in global growth due to US tariffs and market volatility, but remains confident in ASEAN's long-term prospects.

• Plans to maintain a prudent stance and support customers amid macroeconomic uncertainties.