UOB Group reported an operating profit of S$4.0 billion for the first half of 2025, a 3% increase compared to the same period last year. The growth was supported by double-digit gains in fee income across its diversified customer base and a stable balance sheet.
Net profit for the period declined by 3% to S$2.8 billion, attributed to pre-emptive general allowances set aside as part of risk management amid ongoing macroeconomic uncertainties. The Board has declared an interim dividend of 85 cents per ordinary share, representing a payout ratio of about 50%. Additionally, shareholders will receive the second tranche of a previously announced special dividend.
Net interest income remained steady year on year, with loan volume growth helping offset margin compression from lower benchmark rates. Non-interest income continued to show positive momentum due to UOB’s broad customer franchise. Net fee income increased by 11%, driven by wealth management, loan-related services, and credit cards. Other non-interest income rose slightly, mainly from higher customer-related treasury flows.
The cost-to-income ratio improved from 44.4% last year to 43.5%, reflecting tighter cost controls. Asset quality stayed stable with a non-performing loan (NPL) ratio at 1.6%. Credit costs were recorded at 34 basis points because of higher specific allowances and additional general provisions.
Group Wholesale Banking saw its profit before tax fall by 12% due to lower interest rates and increased competition for quality assets; however, investment banking achieved record fees and customer-related treasury income grew strongly. Transaction banking contributed nearly half of total wholesale banking income despite challenges such as US tariffs, supported by a rise in trade loans and an expanded CASA base.
Group Retail Banking posted an 11% increase in profit before tax to S$1.1 billion for the first half of the year, with retail deposits surpassing S$200 billion for the first time—a sign of continued CASA growth. Wealth management income rose by 15%, helped by clients shifting deposits into invested assets under management (AUM). High net-worth AUM also gained momentum with net new money inflows reaching S$3 billion in the second quarter alone.
Credit card income climbed by 5% compared to last year alongside strong growth in card billings—results supported by UOB’s regional presence and partnerships.
Mr Wee Ee Cheong, Deputy Chairman and Chief Executive Officer of UOB said: “The Group delivered a steady set of results driven by our core businesses, including robust fee growth across our diversified franchise. Asset quality was resilient, and our balance sheet remained strong, underpinned by healthy capital and liquidity levels.
As the global landscape transitions towards a multipolar world order, ASEAN continues to demonstrate resilient growth. We remain confident in the region’s long-term prospects, anchored by sound fundamentals. With regional integration, trade diversification and rising foreign direct investments, ASEAN is well-positioned to thrive in the evolving global economy.
Our regional franchise has gained significant scale following the Citigroup acquisition, expanding our customer base across ASEAN to more than 8.4 million. We are progressing well in reshaping our business model towards a more diversified and fee-driven revenue mix – leveraging our connectivity strength and regional scale. As a long-term player, we are committed to supporting clients through uncertainties and investing in capabilities for sustainable growth.”
Operating expenses were largely unchanged at S$3.1 billion during this period while allowance provisions increased significantly due to higher specific allowances as well as pre-emptive measures against potential risks.
Quarter-on-quarter comparisons showed that net profit fell by 10% between Q2 and Q1 this year; net interest margins narrowed further amid declining asset yields; wealth management fees softened as customers adopted caution given economic uncertainties; but disciplined cost management led operating expenses down slightly compared with previous quarters.
On capital adequacy metrics: UOB maintained strong positions throughout this period—with Common Equity Tier One Capital Adequacy Ratio at 15.3%, average all-currency Liquidity Coverage Ratio at 141%, and Net Stable Funding Ratio at 118%, all comfortably above regulatory requirements (https://www.mas.gov.sg/regulation/capital-markets/basel-iii).
Asset quality remained stable overall—the NPL ratio held steady at expected levels thanks partly to higher recoveries—and coverage ratios were kept prudent both for non-performing assets (88%) or including collateral (209%), as well as performing loans (0.8%).