-- United Overseas Bank's (SGX:U11) net profit slipped 4% in the first quarter on lower net interest and fee income amid a softer operating environment for the Singaporean bank.
The bank logged net profit of SG$1.44 billion, down from SG$1.49 billion in the year-ago period, according to a Thursday filing with the Singapore Exchange.
The figure also underscores the "resilience of (UOB)'s franchise," the lender said.
Earnings per share slipped to SG$3.40 from SG$3.49 in the year-ago period. Analysts polled by Visible Alpha had projected earnings per share of SG$0.83 for the period.
Net interest income fell 4% year over year to SG$2.32 billion from SG$2.41 billion but still beat Visible Alpha's estimate of SG$2.31 billion.
Despite recording lower interest income, the bank's customer loans grew 4% to SG$353.8 billion from SG$341.2 billion, helping minimize the impact of margin pressures from the lower interest rate environment, UOB said.
The non-performing loan ratio was at 1.5% in the first quarter, unchanged from the linked quarter but lower than the 1.6% recorded in the year-ago quarter.
Credit costs on loans remained within expectations at 26 basis points.
Net fee income declined 8% to SG$637 million from the record-high of SG$694 million in the year-ago period amid a "more cautious and risk-off market sentiment."
Deposits jumped 6% to SG$426.7 billion from SG$401.3 billion. Assets under management jumped 5% to SG$198 billion from SG$188 billion.
"While global uncertainty remains elevated, business activity held up across our key segments," CEO Wee Ee Cheong said in a statement.
For 2026, UOB forecasts loans to grow in single digits and full-year net interest margin to range between 1.75% and 1.8%.
The bank expects fees to grow in single digits, while it forecasts operating costs to rise in low single digits. Credit expenses could increase between 25 and 30 basis points.
UOB also expects wealth income to double by 2030, Reuters reported Thursday, citing Wee.