The bank was the first among Singapore's three local banks to release third-quarter results. Its performance was boosted by stronger client franchise income and trading and investment income.
UOB released its third-quarter results for 2019, beating estimates slightly with net earnings of S$1.12 billion for the quarter, up 8 percent from the year before, the bank said in a press release on Friday.
The figure is 4 percent less than the bank's Q2 net earnings, with the bank citing increased credit costs. The S$3.34 billion total for the first nine months of 2019 is a record, up 8 percent from 2018.
Loans Boost Net Interest Income
Net interest income increased 5 percent to S$1.69 billion, led by an 8 percent growth in loans. Net fee and commission income grew 14 percent to S$551 million, boosted by strong wealth management performance, while trading and investment income grew 67 percent to S$310 million from investment securities.
Higher income and investment in strategic initiatives saw the bank's expense increasing 14 percent to $1.15 billion.
Economic Headwinds
The bank said it expects business sentiment to be weighed down by global economic headwinds going forward, but noted its stronger regional footprint, and new branches in Hanoi, Vietnam and Zhongshan, China, that allows it to capture investment flows in the region, as businesses diversify their supply chains amid ongoing trade tensions.
«Our sound balance sheet will enable us to support our customers through the uncertain operating environment and to continue investing in our people and capabilities for sustained growth,» Wee Ee Cheong, deputy chairman and chief executive officer, said.
