United Overseas Bank 3Q Net Profit Beats Expectations

By Saurabh Chaturvedi Features Dow Jones Newswires

United Overseas Bank Ltd. (U11.SG)reported Friday a greater-than-expected 11.6% rise in its third-quarter net profit as net interest income and interest margin rose amid growth in loans.

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The smallest bank in Singapore by assets said net profit in the July-September quarter was 883 million Singapore dollars (US$649.7 million), up from S$791 million in the same period last year.

UOB was expected to deliver net profit of S$793.9 million, according to FactSet.

Net interest income rose 14.6% on year to S$1.41 billion, from S$1.23 billion a year ago, while fee and commission income rose 12% to S$551 million. But other noninterest income fell 12%, still leaving total income at S$2.24 billion, up from S$2.04 billion.

Total loans to customers rose to S$230.07 billion from S$213.47 billion, and net interest margin was higher at 1.79% in the September quarter, compared with 1.69% last year.

Nonperforming loans, or the bad loan ratio, was flat at 1.6% of gross customer loans, UOB said.

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Write to Saurabh Chaturvedi at saurabh.chaturvedi@wsj.com

(END) Dow Jones Newswires

November 02, 2017 20:11 ET (00:11 GMT)