Fee and interest income at UOB rose in the third quarter, according to the bank’s financial results, though profits stayed flat due to costs linked to the Citi acquisition.
UOB posted a net profit of nearly S$1.4 billion ($1 billion) in the third quarter of 2023, according to the bank’s financial results, down 1 percent year-on-year.
Total income grew 9 percent to S$3.5 billion. Net fee income increased 14 percent to S$591 million, led by higher credit card, wealth management and loan-related fees. Net interest income also increased by 9 percent to S$2.4 billion due to a 14 basis point boost in net interest margin. Total expenses were up 4 percent to S$1.4 billion while allowance for credit and other losses more than doubled to S$235 million.
For the first nine months of 2023, the bank recorded a net profit of S$4.3 billion, up 26 percent year-on-year.
One-Off Expense
UOB’s figures in the third quarter also accounted for its acquisition of Citi’s consumer banking businesses in Malaysia, Thailand and Vietnam. Excluding this one-off expense, the bank recorded a so-called «core net profit» of S$1.5 billion in the third quarter (5 percent increase) and S$4.6 billion year-to-date (33 percent increase).
«Our Citigroup integration is on track. Integration for Indonesia, Thailand and Vietnam is progressing as planned after we successfully migrated all Citigroup customers in Malaysia to our platform,» said UOB deputy chairman and CEO Wee Ee Cheong.
