United Overseas Bank (U11) investor relations material

Executive summary

• Net profit for Q1/1Q26 was S$1.4 billion, up 2% QoQ but down 4% YoY, reflecting resilience and a diversified income base amid global uncertainty and market volatility.

• Performance was underpinned by strong capital and liquidity positions, robust reserve buffers, and a diversified business model across retail, wholesale, and global markets.

• Asset quality remained stable with NPL ratio at 1.5% and NPA coverage at 100% (272% with collateral).

• Trading and investment income rebounded 88% QoQ to S$405 million, driven by strong customer treasury flows and market volatility.

• Fee income rose 2% QoQ but fell 8% YoY to S$637 million, supported by core fee drivers and normalization of card fees.

Financial highlights

• Total income for Q1/1Q26 was S$3.42 billion, up 4% QoQ but down 6% YoY; operating profit was S$1.9 billion, up 8% QoQ but down 9% YoY.

• Net interest income was S$2.3 billion, down 1% QoQ and 4% YoY, with net interest margin at 1.82%.

• Gross loans grew 4% YoY, with trade loans up 19% and CASA balances up 10% YoY.

• Expenses were well controlled at S$1.5 billion, flat QoQ and down 2% YoY, with continued investment in strategic initiatives and technology.

• Cost-to-income ratio improved to 42.6%–44.5%.

Outlook and guidance

• Expect low single-digit loan growth, high single-digit fee growth, and full-year NIM of 1.75%–1.8%.

• Operating cost growth to remain in the low single digits; total credit cost guided at 25–30 basis points.

• Focus remains on disciplined organic execution, especially in wealth, cards, trade, and deepening ASEAN relationships.

• Continued investment in regulatory requirements and strategic initiatives to support long-term growth.