UOB net profit up 53% in H1; 85 cents interim dividend announced

Net profit was S$1.4b in Q2 when including the one-off Citigroup integration expenses.

UOB reported a core net profit of S$3.1b in H1, 53% higher compared to the first six months of 2022. Including the one-off Citigroup integration expenses, net profits was S$2.9b.

An interim dividend of 85 cents per ordinary share has been announced, with a payout ratio of approximately 49%. The dividend was 42% higher than the dividend last year.

For Q2, core net profit rose 35% to S$1.5b. Net interest income grew 31%, whilst other non-interest income rose sharply on higher customer-related treasury income and strong performance from trading and liquidity management activities.

Net profit for Q2 was S$1.4b if including the one-off Citigroup integration expenses.

The non-performing loan ratio was retained around 1.6%. Credit costs were at 30 basis points. 

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For the first six months of 2023, group wholesale banking income rose 24% to S$3.6b, which UOB attributed to “focus on good quality credits.”

UOB’s loans rose slightly by 2%, supported by trade and event-driven loans to existing clients. Cross-border income also grew 17%. Transaction banking income now accounts for 53% of total wholesale banking income, UOB shared.

UOB’s retail business, meanwhile, saw its income jump 58% to S$2.7b in H1 compared to the same period in 2022. This was backed by a sustained consumer spending momentum, and consolidation of the Citigroup portfolio into UOB.

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Retail deposits grew 20% compared to H1 2022, and UOb said that it continues to see positive net new money inflows of S$12b year-to-date. This brings UOB’s total assets under management to S$165b, 19% higher than a year ago.