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Singapore, November 4, 2026 – United Overseas Bank reported higher third-quarter earnings on Wednesday, as a sharp reduction in provisions for potential bad loans offset modest growth in lending income.
The Singapore lender’s net profit reached S$1.25 billion in the three months to Sept. 30, up 182 per cent from S$443 million a year earlier.
The increase reflected an unusually weak comparison period, when UOB made substantial provisions amid economic uncertainty and concerns about commercial property markets.
The bank set aside S$258 million for credit and other losses, 81 per cent less than the S$1.36 billion recorded a year earlier.
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Earnings nevertheless fell 15 per cent from the previous quarter and missed the S$1.38 billion average forecast of analysts surveyed by Bloomberg.
UOB’s revenue picture was mixed. Net interest income, the difference between what a bank earns on loans and pays on deposits, edged up 1 per cent to S$2.28 billion.
Loan growth continued to support earnings as pressure on lending margins persisted.
Net fee income climbed 19 per cent year on year to a record S$733 million, driven by wealth management, card services and loan-related activities.
Customer related treasury income also reached a record, while assets under management grew 3 per cent to S$204 billion.
In the first nine months of 2026, wealth income increased 13 per cent and card income rose 25 per cent.
Wholesale banking loans grew 9 per cent, with trade loans advancing 31 per cent, the bank said.
Expenses fell 4 per cent quarter on quarter to S$1.6 billion as income moderated slightly.
Chief executive Wee Ee Cheong said customer activity remained healthy.
UOB, which serves more than eight million customers in the region, plans to broaden its wealth franchise and strengthen wholesale banking to capture cross-border opportunities.
Investors, however, face questions beyond the headline profit increase.
Singapore’s banks remain exposed to narrowing interest margins, shifting bond yields and scrutiny of financing linked to environmentally damaging activities.
UOB’s results show resilient fee generating business, but also underline that lower credit provisions, rather than broad revenue growth, drove much of the quarterly rebound.
