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ES
UOB Q2 Net Profit Rises 10% as Wealth Management Growth Boosts Earnings
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The results highlight the bank’s ability to generate growth from fee-based businesses as lower interest rates weigh on traditional lending income.
Net interest income declined 2% year-on-year to S$2.30 billion, reflecting margin compression caused by lower benchmark interest rates.
Net fee income increased 5% to S$665 million, with record wealth management fees compensating for softer investment banking activity.
For the first half of the year, UOB recorded net profit of S$2.92 billion, representing a 3% increase from a year earlier, even as net interest income declined 3%.
The outlook suggests the bank expects its diversified ASEAN banking franchise and expanding wealth management business to support earnings as the lower-interest-rate environment continues.