Singapore-based UOB recorded growth across its wholesale, global markets and retail businesses, resulting in a significant rise in profits for the first quarter.
UOB posted a net profit of S$1.5 billion ($1.1 billion) for the first quarter of 2023, according to the bank’s results, up 67 percent year-on-year.
Excluding one-off expenses, including integration costs linked to the acquisition of Citi’s consumer banking business, the Singapore lender registered a record profit of S$1.6 billion, up 74 percent.
Diversified Growth
According to UOB, performance in the first quarter was driven by growth across wholesale, global markets and retail businesses.
While net fee income fell 4 percent to S$552 million, net interest income rose 43 percent to $2.4 billion and other non-interest income quintupled to S$563 million. Operating expenses also grew 36 percent to S$1.4 billion.
«Recent pockets of banking instabilities in the US and Europe have led to some market volatility and added to concerns over the global growth outlook,» said UOB deputy chair and chief executive Wee Ee Cheong. «Asia is poised to register growth this year and we are well-positioned to ride on the region’s economic recovery with our strong balance sheet, backed by healthy capital and liquidity positions.
Integration on Schedule
UOB is in the midst of integration with newly obtained consumer businesses from Citi and the bank expects to be on track to close in Indonesia by the end of 2023, following completed acquisitions in Malaysia, Thailand and Vietnam.
«As we scale up our regional franchise, we will continue to invest in capabilities and to forge partnerships,» Wee added.
