UOB net profit up 18% with a solid $1b

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Paul Howell
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Financial Services

The growth was driven by lower impariment charges in 2021.

UOB's net profit hit a soild $1b in the first quarter, an 18% increase from the same period last year.

"Our core businesses are growing well across our diversified franchise and we are seeing quality growth with record fee income," said UOB Deputy Chairman and CEO Wee Ee Cheong in a bourse disclosure.

Totail impariment charges were 29% lower in the first quarter of 2021 than in 2021, mainly due to allowance for impared assets.

Net interest income decreased by 4% as loan growth was offeset by the impact of rate cuts on margins across the region.

Fee income was 24% higher, driven by wealth, laon-related and fund management schemes.

Trading and investment income grew by 10% due to higher net gains from investment securities.

"We expect this momentum to continue as economic and business activity picks up and market sentiment improves across the region, starting with Singapore and Greater China," Wee said.