UOB posts 4.4% drop in Q1 net profit, in line with forecasts

UOB posts 4.4% drop in Q1 net profit, in line with forecasts

SINGAPORE - United Overseas Bank, the smallest of Singapore's three listed banks, posted a 4.4 per cent fall in first-quarter net profit, in line with expectations, after lower wealth management fees and trading income hit non-interest income.

UOB's net profit came in at S$766 millin in the three months ended March, versus S$801 million a year earlier and compared with an average forecast of S$764 million from five analysts polled by Reuters.

The bank blamed softer investor appetite due to volatile market conditions as the reason for the decline in wealth management and trading income.

UOB reported a 30.7 per cent decline in provisions for bad loans, even though it took some specific provisions for commodities-related exposure.

Weak commodity prices have hit energy services firms and in turn are affecting asset quality at Singapore banks, with more deterioration seen in 2016.

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