Investors have been waiting with bated breath for the earnings from the three local banks to get an indication of how the economy is faring.The first to announce its fiscal 2023 first quarter (1Q 2023) business update is United Overseas Bank Ltd (SGX: U11), or UOB.
UOB Group (UOB) has posted a record S$1.6 billion in core net profit for the first quarter of 2023 (1Q23), up 74% compared with the same period last year, delivering resilient performance with continued income growth.
Net interest margin expanded 56 basis points driving net interest income up by 43%. Non-interest income surged on record high trading and investment income, which more than offset the decline in net fee and commission income.
The Group’s 1Q23 performance was underpinned by growth across wholesale, global markets and retail businesses. On a quarter-on-quarter basis, wealth management fees rebounded strongly from improved investor sentiments. Credit card fees also sustained momentum.
Credit costs in 1Q23 stayed within expectations at 25 basis points, with non-performing loan (NPL) ratio stable at 1.6%. The Group’s balance sheet remained robust with adequate liquidity and Common Equity Tier 1(CET1) ratio at 14.0%.
