United Overseas Bank (U11) Q3 2024 TU earnings summary

Executive summary

• Achieved record core net profit of S$1.6 billion in 3Q24, up 11% year-over-year, driven by broad-based growth across ASEAN and a resilient balance sheet.

• Net fee income and trading/investment income hit record highs, with wealth management and treasury activities as key contributors.

• Integration of Citigroup's consumer banking in Malaysia, Thailand, Indonesia, and Vietnam delivered promising cross-sell synergies.

Financial highlights

• 3Q24 net profit (including one-off expenses) was S$1.61 billion, up 16% YoY and 13% QoQ.

• Net interest income for 3Q24 rose 1% YoY to S$2.5 billion; net fee income grew 7% YoY to S$630 million.

• Trading and investment income surged 82% YoY to S$709 million; other non-interest income up 70% YoY to S$744 million.

• Core cost-to-income ratio improved to 41.5%; total expenses rose 5% YoY.

• EPS for 3Q24 was S$3.79 basic, S$3.78 diluted; NAV per share at S$27.42.

Outlook and guidance

• 2025 outlook projects high single-digit loan growth, double-digit fee growth, and higher total income.

• Cost-to-income ratio expected at 41–42%; credit costs guided within 25–30 bps.

• Allowance increases in Thailand retail expected to normalize in the next two quarters.

• Management remains confident in ASEAN's long-term growth potential and aims to intensify efforts in key markets.