UOB saw profits climb in the second quarter of 2023 from higher interest income, due to a significant improvement in margins.
UOB posted a net profit of S$1.4 billion ($1.1 billion) in the second quarter of 2023, according to the bank’s financial results, up 27 percent year-on-year. Excluding the one-off cost of integration with newly acquired Citi consumer units in Indonesia, Malaysia, Thailand and Vietnam, profit for the quarter reached S$1.5 billion, up 35 percent.
Total income grew 31 percent to S$3.5 billion with net interest income also increasing 31 percent to S$2.4 billion, driven by a 45 basis point expansion in net interest margin. Net fee income fell 8 percent to S$524 million while other non-interest income more than doubled to S$581 million. Excluding integration costs with Citi, expenses were up 22 percent to S$1.4 billion.
In the first half of 2023, UOB’s net profit rose 45 percent to S$2.9 billion. Excluding the integration costs, the bank recorded a 53 percent increase in profits to S$3.1 billion.
