CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

UOB net profit up 7% to S$916 million in Q4

Net profit for the quarter was supported by higher net interest income and a growth in loans, the bank said.

United Overseas Bank (UOB) clocked in a 7% increase in net profit for the fourth quarter, supported by higher net interest income and a growth in loans, the bank said on Friday morning. The group posted a record net profit for the full year of 2018, at S$4.0 billion.

Net profit for the fourth quarter came in at S$916 million, higher than the S$855 million in the same quarter a year ago. Compared to the third quarter, net profit was lower by 12%, due to heightened market uncertainties, said UOB.

Net interest income for the fourth quarter rose by 10% to S$1.6 billion, supported by an 11% growth in loans. Net interest margin fell by one basis points for the fourth quarter compared to the same period a year ago, at 1.80%.

Earnings per share (EPS) for the fourth quarter came in at 2.15 Singapore cents, higher than the 1.98 Singapore cents a year ago.

Healthy growth helped deliver record profits

The group registered a record profit for the full year of last year, an 18% gain from a year ago’s S$3.4 billion to S$4.0 billion, supported by strong growth in both net interest and fee and commission income, the bank said. Net interest margin increased by five basis points from a year ago to 1.82%, due to the rising interest rates environment.

Commenting on the results, Mr Wee Ee Chong, deputy chairman and chief executive of UOB said the ‘healthy growth’ across the group’s core franchise has helped delivered the record profits for the full financial year of 2018.

As global uncertainties persist in 2019, Mr Wee said UOB will stay disciplined in pursuing sustainable growth, while maintaining a risk-focused approach and equipping its clients for the future.

Despite the market volatility last year, the group said its ‘funding position and capital base stayed strong’. Gross loans and deposits grew 11% and 7% year-on-year to S$262 billion and S$293 billion respectively, with a healthy loan-to-deposit ratio of 88.2% as at the end of last year.

The group is providing a final dividend of 50 Singapore cents per ordinary share. In appreciation of the support from its shareholders, UOB said it is giving a special dividend of 20 Singapore cents. Adding the interim dividend of 50 Singapore cents, the total dividend for the financial year of 2018 amounts to S$1.20 per ordinary share, which is a 20% increase compared to last year.

UOB shares were lower a few hours into trading on Friday morning, down 1.58% or S$0.41, at S$25.57.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Try a risk-free trade
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take advantage while conditions prevail.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Friday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.