Singapore’s UOB registered a record annual profit in 2023 on the back of strong margin expansion for interest income.
UOB's net profit in 2023 grew 25 percent to a record S$5.7 billion ($4.2 billion), according to the bank’s annual report. Excluding the one-off costs associated with its acquisition of Citigroup’s Malaysia, Thailand, Vietnam and Indonesia consumer banking businesses, UOB’s core net profit increased 26 percent to S$6.1 billion.
Net interest income rose 16 percent to S$9.7 billion due to a margin expansion of 23 basis points and a loan growth of 2 percent in constant currency. Net fee income increased 4 percent to S$2.2 billion, driven by higher credit card and wealth fees. Core operating expense, which excludes the one-off cost from the Citi acquisition, increased 15 percent to S$5.8 billion.
Integration Progress
On the Citi acquisition, UOB deputy chairman and CEO Wee Ee Cheong said that the bank had completed the integration of the Malaysia and Indonesia portfolios with Thailand and Vietnam following suit in the coming months.
«With our strengthened market position and larger regional franchise, we will focus on enhancing our offerings and capabilities as we serve our expanded customer base,» he said.
Bonus for Junior Workers
Similar to its Singapore rivals, UOB has also followed the recommendation of the city-state’s National Wages Council to help employees cope with the rising cost of living.
To that end, the bank has provided a one-off extra month of bonus for its junior workers, or about 6,000 employees across the group.
