Singapore’s United Overseas Bank (UOB) reported a 7 percent decline in fourth-quarter net profit, falling to S$1.41 billion, as margin pressures offset loan growth, the bank announced Tuesday.
The results missed analyst expectations, coming in below the S$1.44 billion consensus estimate compiled by Bloomberg. Net profit for the three months ended December 31, 2025, compared with S$1.52 billion a year earlier, according to the bank’s statement. This marks the second consecutive quarter UOB has missed profit estimates, following a larger-than-expected jump in allowances for credit losses in the third quarter.
UOB declared a dividend of S$0.71 per share for the second half of 2025, down from S$0.92 in the same period the previous year. The full-year dividend totaled S$1.56 per share, representing a payout ratio of approximately 50 percent.
Net interest income decreased 4 percent in the fourth quarter to S$2.35 billion, impacted by narrowing net interest margins, which fell to 1.84 percent from 2 percent previously. However, net fee income saw a 10 percent increase, reaching S$625 million. Other non-interest income declined by 28 percent year-on-year to S$319 million.
Despite the profit dip, UOB announced a one-off payment of half a month’s base salary for approximately 6,000 junior employees, totaling around S$4 million, to be disbursed in the second quarter of 2026. The bank cited the contributions of these employees “amid a challenging external environment.”
For the full year 2025, UOB’s net profit fell 23 percent to S$4.7 billion, compared to S$6.05 billion in 2024. Net fee income rose 7 percent to a record S$2.6 billion, driven by growth in wealth management and loan-related fees.
UOB Deputy Chairman and Chief Executive Officer Wee Ee Cheong stated the group delivered a “resilient full-year performance, fuelled by strong fee momentum across our diversified business franchise.” He also highlighted the bank’s “strong balance sheet with robust capital and liquidity and stable asset quality.”
The non-performing loans ratio remained stable at 1.5 percent, with non-performing assets coverage at 97 percent, or 254 percent when collateral is considered. Total allowances for credit losses were halved to S$113 million due to lower specific allowances.
UOB’s results come after DBS reported its full-year earnings on February 9, with OCBC scheduled to release its figures on Wednesday.
Shares of UOB closed at S$38.80 on Monday, February 23, 2026, a 0.5 percent or S$0.20 increase.
