UOB recorded a profit increase in the second quarter of 2022, fuelled by improved income from higher interest rates.
UOB posted a net profit of S$1.1 billion ($800 million) in the second quarter of 2022, according to a statement, up 11 percent compared to the same period last year.
This was primarily fuelled by an 18 percent increase in net interest income to $1.9 billion. Net fee income fell 3 percent to $567 million while other income climbed 6 percent to $273 million. According to the bank, a new high in credit card and loan-related fees were offset by lower wealth and fund management fees. Operating expenses increased 12 percent to S$1.2 billion while impairment charges dropped 25 percent to S$137 million.
Improvement in First Half
A similar gain was reported for the first half, with net profit also rising 11 percent year-on-year to $2 billion.
«We have delivered stable profits buoyed by higher-than-expected net interest income driven by rising interest rates and our active balance sheet management,» said UOB deputy chairman and chief executive Wee Ee Cheong.
«This rising interest rate environment is set to further boost our margins for the year,» he indicated.
