UOB's net profit up 5.4% to $807m in Q1

Thanks to higher non-interest income.

Singapore banking giant UOB reported a 5.4% growth in earnings for the first quarter of the year.

According to OCBC Investment Research, this came as net-interest income and non-interest income reported strong gains for the quarter, up 2.2% to $1.3b and 18% to $819m.

On the non-interest income side, the growth came from the strong increase in net trading income, which was up 59% to $261m.

Meanwhile, allowances remained elevated at $186m this quarter versus $131m last quarter and $117m in 1Q16. Non-performing loans ratio also stayed stable at 1.5%.

"Overall, its 1Q results showed good improvement over the previous quarter," OCBC Investment Research said.