United Overseas Bank Limited (UOVEF.PK, UOVEY.PK), a Singaporean lender, on Wednesday registered an increase in net profit for the full year, helped by a rise in non-interest income, driven by an improvement in net fee and commission income.
Wee Ee Cheong, CEO of UOB, said: "The Group achieved a record net profit in 2024, driven by strong fee income as well as robust trading and investment income. Our long-term investments in regional platforms and capabilities are paying off, and we expect continued revenue growth this year."
For the 12-month period to December 31, 2024, the company recorded a net income of S$6.045 billion or S$3.54 per share, higher than S$5.711 billion or S$3.33 per share of last year. Excluding the one-off expenses, core net profit was at S$6.2 billion, up from the previous year's S$6.060 billion.
Net asset value per share was S$28.11 per share, higher than S$26 per share in the previous year.
Profit before tax stood at S$7.151 billion as against S$6.863 billion a year ago.
Operating profit after allowance and amortization moved up to S$7.030 billion from S$6.770 billion in 2023. Total operating income was S$14.294 billion, compared with S$13.932 billion in the previous year.
Non-interest income improved to S$4.620 billion from S$4.253 billion a year ago.
Net fee and commission income was S$2.395 billion, up from the prior year's S$2.235 billion, led by double-digit growth in wealth management fees from improved investor sentiments, alongside stronger card fees on an enlarged regional franchise, and higher loan fees as lending and capital market activities picked up.
Net interest income, however, slipped to S$9.674 billion from last year's S$9.679 billion.
Net customer loans were S$333.930 billion, higher than S$317.005 billion in 2023, while total deposits also increased to S$403.978 billion from last year's S$385.469 billion.
For the full year, United Overseas Bank will pay a final dividend of 92 cents per share. Together with the interim dividend of 88 cents per share paid in 2024, the total dividend for the year will be S$1.80 per share, higher than last year's S$1.70 per share.
The final dividend is scheduled to be paid on May 13 to shareholders of record as of April 29.
In addition, the lender will pay a special dividend of 50 cents in 2025 as part of the Bank's capital distribution package. This dividend will be paid in two tranches. A dividend of 25 cents per share is scheduled to be paid on May 13 to shareholders of record as of April 29, while the remaining 25 cents per share will be paid on August 28 to shareholders of record as of August 18.
For comments and feedback: editorial@rttnews.com