UOB Profit Dips From Preemptive Allowances
Singapore-based UOB recorded lower profits in the first half of 2025 as it set aside allowances to address macroeconomic uncertainties.
UOB’s net profit in the first half of 2025 decreased 3 percent year-on-year to S$2.8 billion ($2.2 billion), according to the bank’s financial results.
Total income rose 2 percent to S$7.1 billion, driven by an 11 percent increase in net fee income to S$1.3 billion. Expenses were unchanged at S$3.1 billion. The bank’s set aside allowances totalling S$569 million, up 44 percent, partly as a preemptive general provision to enhance coverage amid macroeconomic uncertainty.
«The Group delivered a steady set of results driven by our core businesses, including robust fee growth across our diversified franchise,» said UOB deputy chairman and CEO Wee Ee Cheong in a statement. «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.»
ASEAN Growth
According to Wee, UOB’s regional franchise in Southeast Asia has gained «significant scale» following its 2022 acquisition of Citi’s consumer banking franchise in Indonesia, Malaysia, Thailand and Vietnam, which led its ASEAN customer base to expand to over 8.4 million.
«As the global landscape transitions towards a multipolar world order, ASEAN continues to demonstrate resilient growth,» Wee added. «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.»
