UOB Group reported net profit of S$2.0 billion for the first half of 2022 (1H22), stable year-on-year, with the strong performance in the second quarter ended 30 June 2022 (2Q22) making good a slower first quarter.
Net profit for 2Q22 of S$1.1 billion was 11% higher than a year ago. Net interest income grew 18% year on year led by strong margin improvement and healthy loan growth. Asset quality remained resilient with total credit costs at 22 basis points and non-performing loan (NPL) ratio at 1.7%.
In 1H22, Group Wholesale Banking income increased 16% year on year to S$2.9 billion with margin lift and loan growth from short-term working capital and debt capital market deals. Loan and investment banking fees hit a new high as the Group supported its business clients in their regional expansion.
The Group’s cross-border income grew 13% year on year, despite near-term headwinds from macroeconomic uncertainties around the world. Group Retail’s income in 1H22 declined 3% from a year earlier to S$1.7 billion, impacted by softer wealth momentum as investors turned cautious amid market uncertainties. Assets under management from affluent customers were stable at S$138 billion. The Group’s deposits registered margin improvement and volume growth across key markets in the region while credit card billings posted strong growth as regional economies reopen and travel resumes.
The Group continued to expand its sustainability portfolio with new products, solutions and initiatives in 1H22. The Group’s sustainable financing portfolio rose to S$20.0 billion, while its total assets under management in environmental, social and governance-focused investments stood at S$11.7 billion as at 30 June 2022. The Board declared an interim dividend of 60 cents per ordinary share, representing a payout ratio of approximately 50%.