United Overseas Bank (UOB) has reported net profit of $4.7 billion for the FY2025 ended Dec 31, 2025, 23% lower from the previous year’s record of $6 billion. The bottom line, which stood within consensus’ estimates of $4.67 billion, fell largely due to the pre-emptive general allowances the bank took in the 3QFY2025. For the 4QFY2025, net profit rebounded to $1.4 billion mainly from lower credit costs, but still lower than the consensus estimate of $1.44 billion. On a normalised basis, 3QFY2025 net profit stood at $1.41 billion.
The bank has recommended a final dividend of 71 cents per share, bringing its total dividend for the year to $1.56, down from FY2024’s final dividend of 92 cents and total dividend of $1.80 per share. The payout ratio for both years remained at an unchanged 50%. This year’s dividend also excludes the pre-emptive general provision set aside last quarter.
FY2025’s net interest income (NII) fell by 3% y-o-y to $9.36 billion as net interest margin (NIM) fell by 0.14 percentage points y-o-y to 1.89% amid lower benchmark rates.
Net fee income rose by 7% y-o-y to a record of $2.6 billion, thanks to double-digit growth in wealth and loan-related fees. Wealth management income rose by 14% y-o-y to $1.28 billion, as clients converted their deposits into invested assets under management (AUM).
Total deposits grew by 7% y-o-y to $220 billion, while CASA (current account savings account) was up by 14.5% y-o-y to $134 billion. High-net-worth AUM was up by 6% y-o-y to $201 billion.
Trading and investment income fell by 21% y-o-y to $1.6 billion as gains normalised.
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Customer loans rose by 4% y-o-y but stood flat q-o-q at $352 billion.
For the year, UOB’s non-performing loans (NPL) ratio stood flat at 1.5%. Non-performing assets (NPA) coverage stood at 97% or 254% after collateral.
Net stable funding ratio (NSFR) stood unchanged y-o-y and q-o-q at 116%, while liquidity coverage ratio stood at 147%.
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Cost-to-income (CIR) ratio stood at 54.7%, 1 percentage point higher y-o-y.
UOB’s Common Equity Tier 1 (CET-1) ratio stood at 15.1%, 0.4 percentage points lower y-o-y, but up by 0.5 percentage points q-o-q.
“The group delivered a resilient full-year performance, fuelled by strong fee momentum across our diversified business franchise. Our balance sheet is strong with robust capital and liquidity and stable asset quality,” says Wee Ee Cheong, UOB’s deputy chairman and CEO.
“Asean’s growth trajectory remains intact, powered by structural trends, including digitalisation, infrastructure investments and deepening regional integration,” he adds, noting “steady momentum” across the bank’s business lines.
“With a robust balance sheet and an expanded regional franchise, we are well placed to support customers through cycles and seize new opportunities,” he continues.
In 2026, Wee has projected the bank to report low single-digit loan growth, a full-year NIM of 1.75% to 1.8%, high single-digit fee growth, low single-digit operating cost growth and total credit costs of 25 to 30 basis points.
In addition to its results, UOB announced that it will pay its junior employees an extra half-month base salary on one-off basis to thank them for their contributions amid a challenging external environment. The supplementary payout will be paid to some 6,000 employees and will amount to about $4 million.
Shares in UOB closed 20 cents higher or 0.52% up at $38.80 on Feb 23.
