The last of Singapore's Big Three banks to report results this week, United Overseas Bank, has like its peers, posted insipid numbers. The results however were better than analysts had predicted.
As with OCBC and DBS issues related to China and stresses in the oil and gas support services sector have affected the full-year results.
United Overseas Bank (UOB) reported a net profit of S$739 million, 6.2 percent below that a of year ago. The bank said stable loan growth was offset by a decline in net interest margin and lower gains from the sale of investment securities.
Asian Consumer Affluence
For the full year, UOB's net earnings fell 3.5 percent to S$3.10 billion. Total income was stable at S$8.06 billion, reflecting what the bank called its «resilience of the group's core businesses in a slowing economic environment.»
Specific allowances on loans though jumped S$577 million across 2016 to S$969 million.
«Global uncertainty, slow growth and rapid digital transformation will continue in 2017, however Asia with its increasing integration and consumer affluence presents opportunities for long-term players such as UOB,» said Wee Ee Cheong UOB’s Deputy Chairman and Chief Executive Officer.
