United Overseas Bank (U11) H2 2025 earnings summary

Executive summary

• Full-year 2025 net profit was SGD 4.7 billion, down 23% year-over-year, impacted by lower net interest margin and pre-emptive provisioning.

• Operating profit for 2025 was SGD 7.7 billion, down 4% year-over-year.

• Record fee income reached SGD 2.6 billion, up 7% year-over-year, driven by wealth, credit cards, and treasury activities.

• Board recommended a final dividend of SGD 0.71 per share, total full-year dividend SGD 1.56 per share, plus SGD 0.50 special dividend.

• Diversified business model and strong ASEAN strategy supported performance amid global uncertainties and shifting supply chains.

Financial highlights

• Net interest margin for 2025 was 1.89%, with Q4 at 1.84%; net interest income down 3% year-over-year.

• Fee income reached a record high, up 10% year-over-year, driven by wealth, credit cards, and treasury activities.

• Expenses fell 2% year-over-year; cost-to-income ratio at 44.6% in Q4 2025.

• Customer loans grew 4% year-over-year to SGD 352 billion.

• Trading and investment income for 2025 was SGD 1.6 billion, down 21% year-over-year.

Outlook and guidance

• 2026 guidance: low single-digit loan growth, full-year NIM of 1.75%-1.8%, high single-digit fee growth, low single-digit cost growth, credit cost of 25-30 basis points.

• Fee income growth revised down to high single digits due to more conservative loan growth outlook.

• Confident in ASEAN growth, with focus on trade, cash management, and less capital-intensive activities.