United Overseas Bank (U11) Q3 2025 TU earnings summary

Executive summary

• Operating profit for 3Q25 was S$1.9 billion, reflecting sustained franchise growth across retail, wholesale, and global markets, but net profit dropped to S$443 million due to S$615 million (US$0.6 billion) in pre-emptive general provisions for macroeconomic and sector-specific risks.

• Franchise growth was supported by robust performance in loans, deposits, CASA, wealth AUM, and fees, with loans up 5% YoY and trade loans up 22% YoY.

• Share buyback program of S$2 billion is ongoing, with 24% completed by September 2025; dividend payout policy of 50% remains unchanged and unaffected by provisions.

• Balance sheet remains robust with CET1 ratio at 14.6% post-dividend, and liquidity and funding ratios comfortably above regulatory requirements.

Financial highlights

• Net interest income for 3Q25 was S$2.3 billion, down 3% QoQ and 8% YoY, as margin compression offset healthy loan growth of 2% QoQ and 5% YoY.

• Fee income rose 8% QoQ and 10% YoY, driven by wealth management, cards, and loan-related activities.

• Trading and investment income grew 16% QoQ, driven by record-high customer flows and treasury income.

• Operating profit of S$1.9 billion was down 3% both QoQ and YoY.

• Allowance for credit and other losses surged to S$1.4 billion in 3Q25, reflecting pre-emptive provisioning.

Outlook and guidance

• 2026 outlook projects low single-digit loan growth, full-year NIM of 1.75%-1.80%, high single- to double-digit fee growth, low single-digit operating cost growth, and total credit costs at 25-30 bps.

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

• Final dividend payment for 2025 will not be impacted by the pre-emptive general allowance set aside.