Singapore-based United Overseas Bank (UOB) posted net earnings of S$1.6 billion (US$1.28 billion) for the first half of 2014, an increase of 6.1% from the first half of 2013.
Operating profit rose 10.6% to S$2.09 billion, led by strong loan growth and higher investment gains.
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In the first six months of 2014, the bank’s total income grew 9.7% year-on-year to a new high of S$3.64 billion, contributed by double-digit growth in net interest income and higher investment income.
Net interest income increased 12.9% to S$2.23 billion, mainly supported by strong loan growth across territories and industries. Net interest margin improved one basis point to 1.72%, the bank said in a statement.
Non-interest income was S$1.40 billion, 5 % higher than a year ago. The increase was contributed mainly by higher gains from investment securities due to a combination of improving market sentiment post the initial concerns over US QE tapering in the first half of 2013, and a one-off gain from investments and revaluation.
Fee and commission income of S$824 million was 7.3% lower year-on-year due to lower corporate finance, fund management and loan-related fees when compared with 1H13 which had some large deals.
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By GlobalDataCommenting on the result, UOB group chairman Wee E Cheong said: "Despite the moderating growth in Asia in the near term, we believe in the region’s long-term potential. We continue to invest in our regional capabilities for our customers as they seize opportunities in the region."
