UOB net profit slips by 1.7% to $2.4b

A one-off gain last year muted growth.

Steadily rising net income could not raise the bar set last year by the banking group, as its net earnings slipped by an inch due to a higher writeback of tax provisions last year.

According to a statement by UOB, the slight drop in earnings overshadowed its total income growth 6.4% to $5.97b, driven by its major business segments.

“For the third quarter of 2015 (“3Q15”), net earnings was reported at S$858 million, an increase of 12.6% over the second quarter of 2015 (“2Q15”) and 1.0% lower from a year ago. Stronger 3Q15 earnings were backed by higher treasury contributions and client franchise income,” UOB said.

Meanwhile, healthy loan growth and an improved net interest margin led net interest in come to rise by 7.7% to $3.65b.

“Net interest margin increased 5 basis points to 1.77% as loan yields improved on rising interest rates in Singapore,” UOB said.

“Our results demonstrate continued resilience amid volatility. Core revenue growth was led by net interest income and fee income while capital and funding positions remain robust,” said Wee Ee Cheong, UOB’s CEO.