UOB Profit Drops on Major Allowance Boost
Singapore-based UOB added more than S$1 billion in «pre-emptive allowance», leading to lower profit in the third quarter.
UOB’s net profit fell 72 percent year-on-year to S$443 million ($339 million) in the third quarter of 2025, according to the bank’s financial results. This was primarily driven by a nearly S$1.1 billion increase in allowance for credit and other losses compared to the previous quarter.
Total income decreased 11 percent to S$3.4 billion as net interest income was affected by margin compression, while net fee income saw strong growth in loan-related, wealth and card activities, offset by card rewards expenses. Other non-interest income also declined due to lower trading and investment income compared to record-high levels last year. Expenses were 6 percent lower.
Excluding allowances and other items, including amortization of intangible assets as well as gains from associates and joint ventures, operating profit was down 16 percent to S$1.9 billion. In the first nine months of the year, net profit dropped 28 percent to S$3.3 billion.
«Pre-Emptive Allowance»
According to the bank, pre-emptive allowance was set aside «in view of ongoing macroeconomic uncertainties and sector-specific headwinds».
«This move reinforces resilience and flexibility to navigate headwinds and sustain long term growth,» explained Wee Ee Cheong, UOB’s deputy chair and CEO.
«By prioritizing balance sheet strength, we stand ready to act, support customers and seize strategic growth opportunities. For shareholders, our share buyback and dividend commitments remain intact, and the pre-emptive allowance will not impact this year’s final dividend.»
