United Overseas Bank (U11) Q3 2025 TU earnings summary

Executive summary

• Operating profit for 3Q25 was SGD 1.9 billion, reflecting resilience and sustained franchise growth across retail, wholesale, and global markets, despite a softening rate environment and global uncertainties.

• Net profit for 3Q25 was SGD 443 million, down sharply due to SGD 615 million (USD 0.6 billion) in pre-emptive general provisions for macroeconomic and sector-specific risks, mainly U.S. and Greater China CRE.

• Healthy growth in loans, deposits (including CASA), Wealth AUM, and fees for the first nine months, with loans up 5% YoY and trade loans up 22% YoY.

• Share buyback program of SGD 2 billion ongoing, with 24% completed by September 2025; 50% dividend payout policy maintained and not impacted by provisions.

Financial highlights

• Net interest income for 3Q25 was SGD 2.3 billion, down 3% QoQ and 8% YoY, as margin compression offset loan growth; net interest margin narrowed to 1.82%.

• Gross fee income rose 8% QoQ and 10% YoY, driven by loan-related, cards, and wealth management; trading and investment income grew 16% QoQ.

• Non-interest income rose 5% QoQ, supported by record customer flows and treasury income.

• Expenses remained stable; cost-to-income ratio increased to 45.2% due to lower income, not higher costs.

• NPL ratio steady at 1.6%; NPA coverage improved to 100% (240% including collateral).

Outlook and guidance

• 2026 guidance: low single-digit loan growth, NIM of 1.75%-1.8%, high single- to double-digit fee growth, low single-digit operating cost growth, and total credit cost of 25-30 bps.

• Credit costs expected to normalize from Q4 2025 onward, barring major global volatility.

• No impact on 2025 final dividend from pre-emptive allowance.

• ASEAN remains a key growth engine despite global uncertainties, with continued disciplined investment and focus on franchise growth.