United Overseas Bank (U11) Q1 2026 TU earnings summary

Executive summary

• Net profit for Q1 2026 was S$1.4 billion, up 2% quarter-on-quarter but down 4% year-on-year, reflecting resilience amid market volatility and a diversified income base.

• Performance was supported by strong capital and liquidity positions, robust reserve buffers, and diversified income streams across retail, wholesale banking, and global markets.

• Integration of Citi portfolio was largely completed, positioning the group as a leading ASEAN banking franchise with 8.5 million customers.

• Fee income rose 2% quarter-on-quarter but fell 8% year-on-year to S$637 million, supported by core fee drivers and normalization of card fees.

• Focused on sustainable, long-term growth, leveraging a diversified business model and regional connectivity.

Financial highlights

• Operating profit for Q1 2026 was S$1.9 billion, up 8% quarter-on-quarter but down 9% year-on-year.

• Net interest income was S$2.3 billion, down 1% quarter-on-quarter and 4% year-on-year, with net interest margin narrowing to 1.82%.

• Gross loans grew 4% year-on-year, with trade loans up 19% and CASA balances up 10%.

• Trading and investment income rebounded 88% quarter-on-quarter to S$405 million, driven by strong customer treasury flows.

• Expenses were well controlled at S$1.5 billion, with continued investment in technology and people.

Outlook and guidance

• Expecting low single-digit loan growth and high single-digit fee growth for 2026.

• Full-year net interest margin projected at 1.75%–1.80%.

• Operating cost growth to remain in low single digits as investments continue.

• Total credit cost guided at 25–30 basis points.

• Ambition to double wealth income by 2030, with execution focused on growing AUM and improving penetration.