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United Overseas Bank has reported a 7% decline in fourth-quarter net profit to SGD 1.41 billion as shrinking margins offset growth in loans and record-breaking fee income.<\/p>\n
United Overseas Bank, the third-largest lender in Southeast Asia by assets, announced on Tuesday that its fourth-quarter net profit fell by 7% compared to the previous year. The Singapore-based institution recorded a net profit of SGD 1.41 billion for the period spanning October to December, down from SGD <\/span>1.52 billion during the same timeframe a year prior. Despite this year-on-year decline, the bank comfortably exceeded the mean estimate of SGD 1.35 billion predicted by analysts. This performance represents a significant recovery from the third quarter, when profits plummeted by 72%, with the bank attributing the recent rebound to a reduction in credit costs.<\/p>\n The financial results for the full 2025 fiscal year highlight the challenges posed by a shifting interest rate environment. The bank\u2019s net interest margin, which serves as a primary indicator of profitability, contracted to 1.89% from 2.03% in the preceding year. This compression led to a 3% dip in net interest income, which settled at SGD 9.36 billion. However, these headwinds were partially mitigated by a stellar performance in the bank\u2019s fee-based divisions. Net fee income surged by 7% to reach a record high of SGD <\/span>2.6 billion, bolstered by robust activity in wealth management and loan-related services as consumer confidence remained resilient.<\/p>\n The bank\u2019s wealth management arm continued its upward trajectory, with assets under management for high-net-worth clients rising by 6% to reach S$201 billion by the end of 2025. In its official news release, the lender noted that transaction banking remained a steady contributor, accounting for nearly half of the total income within the wholesale banking sector. This stability comes despite the dual challenges of lower benchmark interest rates and the ongoing economic uncertainty surrounding United States trade policies. The market remains particularly sensitive to the tariff strategies of President Donald Trump, which have been further complicated by recent judicial rulings and the administration\u2019s subsequent reactions.<\/p>\n Shareholders are set to receive a final dividend of SGD 0.71 per share, which, when combined with the interim dividend of SGD <\/span>0.85, brings the total payout for the year to SGD 1.56 per share. Looking ahead to 2026, the bank has largely maintained its previous guidance, though it has slightly tempered its expectations for fee growth. The lender now anticipates high single-digit growth in fees, a modest adjustment from the high single-to-double-digit range projected in November.<\/p>\n These results follow a similar trend observed at DBS Group, Singapore\u2019s largest bank, which recently posted earnings that fell short of market forecasts. The banking sector\u2019s reporting season continues this week as global competitors Standard Chartered and HSBC prepare to release their own financial statements. While UOB faces a landscape defined by geopolitical volatility and narrower margins, its record fee income suggests a successful diversification of revenue streams in a testing global economy.<\/p>\n<\/p><\/div>\n