United Overseas Bank Second Quarter Profit Rises 5.5% on Year

By Gaurav Raghuvanshi Features Dow Jones Newswires

United Overseas Bank Ltd. (U11.SG) Friday said its net profit in the second quarter rose 5.5% compared with a year ago, led by gains in income from interest, fees and commissions.

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Net profit in the June quarter was 845 million Singapore dollars (US$622 million), compared with S$801 million in the same period last year, the third-biggest Singapore lender by assets said in a regulatory filing.

Net interest income increased 12% on year to S$1.36 billion, driven by gross loan growth of 7.3% and an improvement in net interest margin to 1.75% from 1.68%, the bank said.

Non-interest income increased 1.8% on year to S$828 million. Fee and commission income grew 9% to S$517 million on higher credit card, fund and wealth management fees.

The ratio of non-performing loans, or bad loans, rose to 1.5% in the second quarter, compared with 1.4% last year, United Overseas said.

Write to Gaurav Raghuvanshi at gaurav.raghuvanshi@wsj.com

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(END) Dow Jones Newswires

July 27, 2017 20:27 ET (00:27 GMT)