Singapore's United Overseas Bank (UOB) reported a 4% decline in first-quarter net profit to S$1.44 billion, a result that nonetheless beat analyst expectations. The Southeast Asian lender cited a "softer operating environment" shaped by lower benchmark rates and cautious market sentiment.
Net interest income fell 4% year-on-year, while net fee income slipped 8% from a record high, as investment banking and loan-related activity moderated. Other non-interest income dropped 17%, dampened by weaker trading and investment results.
CEO Wee Ee Cheong noted momentum in current and savings accounts (CASA), wealth management, cards, and loans. Wealth income rose 6% and assets under management grew 5% to S$198 billion.
However, net interest margin-a key profitability gauge-narrowed to 1.82% from 2.00% a year earlier.
UOB's results follow stronger quarterly reports from rival DBS and global peer Standard Chartered, while HSBC posted an unexpected loss linked to a UK mortgage lender collapse.