Brief Introduction:
Incorporated in 1935, United Overseas Bank Limited (SGX: U11), or UOB, has built its presence through a combination of organic growth and strategic acquisitions. Today, the bank operates an extensive global network of more than 470 offices across 19 markets spanning Asia Pacific, Europe, and North America.
UOB is recognised as one of Asia’s leading banking groups and maintains strong credit standing, with high investment-grade ratings from major global rating agencies, including an Aa1 rating from Moody’s Investors Service and AA- ratings from both S&P Global Ratings and Fitch Ratings.
The bank’s strategic focus remains centred on ASEAN, where it aims to support “the people and businesses within, and connecting with, ASEAN” by leveraging its deep regional expertise and connectivity.
Financial Figures (9M FY2025 vs. 9M FY2026):
| 9M FY2025 | 9M FY2026 | % Variance | |
| – Net Interest Income (S$’mil) | $7,009m | $6,900m | -1.6% |
| – Net Fee & Commission Income (S$’mil) | $1,945m | $2,035m | +4.6% |
| – Other Non-Interest Income (S$’mil) | $1,565m | $1,464m | -6.5% |
| Total Income (S$’mil) | $10,519m | $10,398m | -1.2% |
| Total Expenses (S$’mil) | $4,629m | $4,722m | +2.0% |
| Net Profit Attributable to Shareholders (S$’mil) | $3,271m | $4,165m | +27.3% |
For the first 9 months of FY2026, UOB delivered a slightly mixed set of financial results, with a 4.6% year-on-year increase in net fee and commission income partially offset by declines in net interest income and other non-interest income, which fell by 1.6% and 6.5% respectively.
The 1.6% year-on-year decline in net interest income was primarily attributable to a 16-basis-point contraction in net interest margin, which eased to 1.75% from 1.91% a year ago as asset margins came under pressure in a lower interest rate environment. This was partially mitigated by healthy loan growth of 6%, supported by the bank’s diversified franchise across its key markets.
Net fee and commission income increased by 4.6% year on year to S$2,035 million, surpassing the S$2 billion mark for the first time. This was largely driven by record wealth management performance, as demand for investment and wealth solutions remained strong, more than compensating for weaker investment banking fees. Meanwhile, customer-related treasury income continued to reach new highs, underpinned by robust hedging and investment demand.
Other non-interest income declined by 6.5% year on year to S$1,464 million, mainly due to lower trading and investment income amid less favourable market conditions.
Despite the decline in total income, net profit rose by a substantial 27.3% year on year to S$4,165 million. This was largely driven by a sharp 81% reduction in allowances for credit and other losses, which fell from S$1,361 million a year ago to just S$258 million.
Financial Figures (3Q FY2025 vs. 3Q FY2026):
| 3Q FY2025 | 3Q FY2026 | % Variance | |
| – Net Interest Income (S$’mil) | $2,265m | $2,278m | +0.6% |
| – Net Fee & Commission Income (S$’mil) | $615m | $733m | +19.2% |
| – Other Non-Interest Income (S$’mil) | $518m | $370m | -28.6% |
| Total Income (S$’mil) | $3,398m | $3,381m | -0.5% |
| Total Expenses (S$’mil) | $1,535m | $1,570m | +2.3% |
| Net Profit Attributable to Shareholders (S$’mil) | $443m | $1,250m | +182.2% |
For the 3rd quarter, UOB reported a largely positive set of financial results, with the only notable weakness being a 28.6% year-on-year decline in other non-interest income, primarily attributable to lower trading and investment income.
In contrast, net interest income edged up by 0.6% year on year to S$2,278 million, while net fee and commission income recorded a strong 19.2% increase to S$733 million, driven by robust growth in wealth management, card-related and loan-related activities.
Key Financial Ratios (2Q FY2026 vs. 3Q FY2026):
| 2Q FY2026 | 3Q FY2026 | Difference (in Percentage Points – pp) | |
| Net Interest Margin (%) | 1.74% | 1.68% | -0.6pp |
| Return on Equity (%) | 11.8% | 10.1% | -1.7pp |
| Non-Performing Loans Ratio (%) | 1.6% | 1.5% | -0.1pp |
UOB’s net interest margin declined by 0.06 percentage points quarter on quarter to 1.68%, from 1.74% in the preceding quarter, largely reflecting higher deposit costs.
On a more positive note, the bank’s non-performing loan ratio improved by 0.1 percentage point quarter on quarter to 1.5%, supported by proactive portfolio monitoring and management.
CEO Mr Wee Ee Cheong’s Comments & Outlook (from the Bank’s Press Release):
“The Group continued to see healthy customer activity across our businesses this quarter, with strong growth in wealth management, healthy loan growth and record fees and customer-related treasury income.
This reflects the strength of our diversified franchise and deep customer relationships, with more than 8 million customers across the region. As connectivity across ASEAN strengthens, customers increasingly value banking partners that can support them across their business, personal and wealth needs. We are broadening our wealth franchise and strengthening our wholesale banking capabilities to support our customers’ growth and capture cross-border opportunities.
Backed by our strong balance sheet, we will continue to invest for the long term. We see significant opportunities ahead and are confident in the Group’s long-term prospects.”
Closing Thoughts:
Overall, UOB delivered a relatively stable set of financial results. One key highlight was its net fee and commission income for 9M FY2026, which surpassed the S$2 billion mark for the first time, driven by record contributions from wealth management, alongside growth in loan-related and card activities. In addition, customer-related treasury income also reached new highs, underpinned by strong demand for hedging and investment solutions.
Another notable positive was the significant reduction in allowances for credit and other losses, which fell by 81% year on year for 3Q FY2026 and 65% year on year for 9M FY2026. This, in turn, contributed to a substantial increase in net profit attributable to shareholders, which surged by 182% for the 3rd quarter and 27.3% for the first 9 months, both on a year-on-year basis.
I also noted a further improvement in the bank’s asset quality, with its non-performing loan ratio declining by 0.1 percentage point quarter on quarter to 1.5%.
Lastly, in line with its half-yearly dividend distribution policy, UOB did not declare any dividends for shareholders in this reporting period.
Related Documents:
3rd Quarter Performance Highlights
CEO’S Presentation Slides
CFO’s Presentation Slides
Disclaimer: At the time of writing, I am a shareholder of United Overseas Bank Limited.
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