UOB posted a record-high net profit for the third quarter, driven by a strong increase in interest income.
UOB registered S$1.4 billion ($1 billion) in net profit for the third quarter, according to the release of its latest financial results, up 34 percent year-on-year. Rising rates played a role as the bank saw a 40 basis point increase in net interest margin, contributing to a 39 percent growth in net interest income to S$2.2 billion.
Overall, the bank recorded S$3.2 billion in total income with a 10 percent drop in net fee income, largely due to lower wealth and fund management fees, which was offset by a 58 percent increase in other non-interest income, especially from treasury demand for hedging activities. Operating expenses reached S$1.4 billion, up 27 percent.
In the first nine months of 2022, UOB's net profit reached S$3.4 billion, up 12 percent compared to the same period last year.
ASEAN Ambitions
Moving forward, UOB will further its ambitions to be a «truly regional bank» with a focus on expanding across Southeast Asia. In fact, the bank unveiled a fresh look last month with a new logo, seal and branding campaign under the slogan, «Doing right by you».
«We have recently launched our brand refresh, where we laid out our sharpened purpose – to build the future of ASEAN,» said UOB chief executive and deputy chairman Wee Ee Cheong.
In January, UOB first agreed to acquire Citi’s consumer banking businesses in Indonesia, Malaysia, Thailand and Vietnam for around $3.7 billion. Key to serving many of these incoming Citi customers in the region is its digital platform, UOB TMRW, which achieved 1 million digitally acquired customers in August.
