UOB’s 1H25 operating profit up 3% YoY to S$4.0 billion
Underpinned by diversified customer franchise and resilient balance sheet
Singapore, 7 August 2025 – UOB Group reported an operating profit of S$4.0 billion for the
first half of 2025 (1H25), up 3% compared with a year ago, underpinned by broad-based
double-digit growth in fee income. Net profit for 1H25 moderated 3% to S$2.8 billion from the
year before, due to pre-emptive general allowance set aside as part of the Group’s risk
management measures amid the macroeconomic uncertainties.
The Board declared an interim dividend of 85 cents per ordinary share, representing a payout
ratio of approximately 50%. The second tranche of the 50 cents special dividend will also be
paid out to shareholders, as part of the Bank’s capital distribution package announced in
February 2025.
Net interest income for 1H25 remained stable year on year, as growth in loan volume helped
to cushion the impact of margin compression from lower benchmark rates. Non-interest
income registered positive momentum, backed by the Bank’s diversified customer franchise.
Net fee income for 1H25 grew 11% across wealth management, loan-related and credit cards.
Other non-interest income rose 1%, supported by a rise in customer-related treasury flows,
although this was partially offset by softer trading and liquidity management activities.
Cost-to-income ratio improved from 44.4% a year ago to 43.5% in 1H25, driven by tighter cost
management. Asset quality remained stable with non-performing loan ratio at 1.6%. Credit
costs for 1H25 stood at 34 basis points, due to higher specific allowance and pre-emptive
general provision set aside.
In 1H25, Group Wholesale Banking’s profit before tax declined 12% from the previous year,
impacted by lower interest rates and competition for quality assets. However, investment
banking delivered record fees while customer-related treasury income registered double-digit
growth. Transaction banking continued to be a key contributor, representing nearly half of total.
wholesale banking income despite the uncertainties from the US tariffs. This was supported
by a 12% year-on-year increase in trade loans and an enlarged CASA base, underscoring
deeper client engagement through integrated cash, trade and supply chain platforms across
key markets. Cross-border income was steady, accounting for 26% of total wholesale banking
income, underpinned by a diversified business franchise and the Group’s strength in
regional connectivity.
Group Retail Banking reported profit before tax of S$1.1 billion for 1H25, up 11%, as growth
in CASA, wealth and cards countered the income pressures from lower rates and market
competition. Retail deposits crossed the S$200 billion mark for the first time, reflecting
continued CASA growth. Wealth management income grew 15%, driven by clients’ conversion
of deposits into invested assets under management (AUM). High net-worth AUM continued to
build momentum with net new money inflows at S$3 billion in the second quarter of 2025.
Credit card income increased 5% year on year, along with double-digit growth in card billings,
supported by the Group’s regional franchise, strategic partnerships and enhanced
rewards offerings
