Despite this drop, UOB maintains its commitment to its share buyback programme and that the provisions will have no bearing to its final FY2025 dividend.
Total income for 3QFY2025 was down 11% y-o-y to $3.47 billion, with both net interest income and net fee income dipping slightly.
CEO Wee Ee Cheong maintains that the bank's core franchise remains strong, with continued momentum across loans, deposits, wealth AUM and fees.
"From this position of strength, we proactively set aside general allowances to significantly enhance provision coverage, backed by our strong capital base," says Wee.
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"This move reinforces resilience and flexibility to navigate headwinds and sustain long term growth," he says.
As of Sept 2025, the bank's non-performing loan ratio was held at 1.6%.
"By prioritising balance sheet strength, we stand ready to act, support customers and seize strategic growth opportunities.
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"For shareholders, our share buyback and dividend commitments remain intact, and the pre-emptive allowance will not impact this year’s final dividend," he adds.
Wee says that Asean remains a key growth engine despite global uncertainties.
The bank will continue to invest with discipline, stay nimble, and play to its strengths.
"We remain committed to growing our franchise, supporting our clients and delivering sustainable long-term value. We move forward with purpose and a clear strategy to deliver on our plans," says Wee.
For the coming 2026, the bank is guiding for low single-digit loan growth and full-year NIM of 1.75% - 1.80%.
It expects to generate high single- to double-digit fee growth while incurring low single-digit operating cost growth.
UOB shares closed at $34.87 on Nov 5, down 0.14% for the day and down 4.6% year to date.
