United Overseas Bank (U11) Q1 2025 TU earnings summary

Executive summary

• Net profit for Q1 2025 was S$1.5 billion, stable year-over-year, supported by broad-based growth across lending, fees, and trading income.

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

• Asset quality remains healthy, with prudent increases in reserves and allowances to strengthen provision coverage.

• Continued focus on supporting clients, especially SMEs, and leveraging regional connectivity for growth.

• Diversified growth across wholesale and retail banking segments contributed to performance.

Financial highlights

• Net interest income was S$2.4 billion (+2% YoY), with net profit stable at S$1.5 billion and ROE at 12.3%.

• Net fee income reached a record S$694 million, up 20% year-over-year, led by loan-related and wealth management fees.

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

• Trading and investment income rose 27% quarter-on-quarter, driven by client activity and market volatility.

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

Outlook and guidance

• Guidance suspended until market conditions stabilize; previous forecasts for high single-digit loan growth and double-digit fee income growth under review.

• Committed to S$3 billion capital distribution plan, with share buybacks and special dividends ongoing.

• Expect continued growth in intra-ASEAN trade and opportunities from supply chain realignment.

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

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