Singapore-based United Overseas Bank saw its first quarter profit dip on the back of flat income and higher expenses.
UOB’s net profit fell 2 percent year-on-year to around S$1.5 billion ($1.1 billion) in the first quarter of 2024, according to the bank’s financial results.
Total income was flat at S$3.5 billion as lower net interest income was offset by higher net fee and other non-interest income. Excluding integration costs related to the acquisition of Citi’s consumer units in four ASEAN markets (Indonesia, Malaysia, Thailand and Vietnam), expenses increased 2 percent to S$1.5 billion, largely due to higher staff costs.
Integration Progress
According to UOB deputy chairman and CEO Wee Ee Chong, integration with Citi’s consumer units is «progressing well». The Singapore lender recently migrated customers in Thailand to the UOB platform after completing the transition in Malaysia and Indonesia in 2023. It will look to complete the integration in Vietnam in 2025.
«Despite heightened geopolitical tensions, our home region of Southeast Asia is relatively resilient,» Wee commented. «We continued to see ongoing shifts in global supply chains and sustained tourism activities. Our extensive regional footprint, enlarged customer franchise and enhanced capabilities put us in a good position to ride on the region’s economic growth.»
