United Overseas Bank (U11) Q3 2026 TU earnings summary

Executive summary

• 3Q26 net profit was S$1.25b, down 15% QoQ as prior-quarter divestment gains did not recur; customer activity remained resilient.

• 9M26 net profit rose 27% YoY to S$4.165b, supported by stronger customer activity and lower credit allowances.

• Strategy focuses on ASEAN connectivity, deeper wealth relationships, wholesale transaction banking and capital-light businesses.

Financial highlights

• 3Q26 net interest income was S$2.28b, down 1% QoQ and up 1% YoY; NIM fell 6 bps QoQ to 1.68%, mainly amid higher funding costs.

• 3Q26 net fee income reached a record S$733m, up 10% QoQ and 19% YoY; gross fee growth was driven by wealth and loan-related activity.

• 3Q26 total income was S$3.38b, down 6% QoQ; trading and investment income was S$322m, down 15% QoQ and 33% YoY.

• 3Q26 expenses were S$1.57b, down 4% QoQ and up 2% YoY; 9M26 expenses rose 2% YoY to S$4.722b.

• 9M26 total income declined 1% YoY to S$10.398b; net profit rose 27% to S$4.165b as total allowances fell 65% to S$672m.

Outlook and guidance

• 2027 loans are expected to grow mid-single digits; NII is expected to exceed 2026, supported by balance-sheet growth.

• 2027 fee income is guided to grow mid- to high-single digits; operating costs are expected to increase mid- to high-single digits.

• 2027 credit costs are guided at 25–30 bps; no 2027 NIM guidance was given.

• 2026 NIM is expected below prior 1.75%–1.8% guidance; 2026 loan, fee and other metrics remain broadly as guided.

• ROE of 12%–13% remains an objective, with continued investment preceding returns.