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 and 10% sequentially, driven by broad-based growth across ASEAN, resilient balance sheet, and strong client franchise.

• Net interest income reached S$2.5 billion (+1% YoY), with net fee income at S$630 million (+7% YoY), and customer-related treasury income up 36% YoY.

• Double-digit growth in cards and wealth fees, with synergies from Citi acquisition boosting customer base and cross-sell opportunities.

Financial highlights

• Net profit (including one-off expenses) was S$1.61 billion, up 16% YoY and 13% QoQ; core ROE at 14.3%.

• Net interest margin stable at 2.05%; loans grew 2% QoQ, mainly from wholesale and mortgages.

• Fee income reached S$630 million, with double-digit growth in cards and wealth fees.

• Trading and investment income surged to S$709 million, driven by record customer flow and treasury income.

• Asset quality stable; NPL ratio unchanged at 1.5%; total credit cost at 34 bps.

Outlook and guidance

• 2025 outlook projects high single-digit loan growth, double-digit fee growth, and higher total income, led by cards, wealth, and trade-related fees.

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

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