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SINGAPORE: <\/span>Singapore’s United Overseas Bank, or UOB, reported on Thursday (May 7) a 4 per cent annual fall in first-quarter net profit that, despite beating expectations, reflected the impact a precarious market backdrop and rate headwinds have had on the lender.<\/span><\/p>\n Southeast Asia’s third-largest bank by assets posted declines across all its income segments for the January-March period, though it maintained its previous guidance for its 2026 outlook.<\/span><\/p>\n Net interest income fell 4 per cent year-on-year due to lower benchmark rates, and net fee income eased 8 per cent from last year’s record high, which UOB attributed to a moderation in investment banking and loan-related activities amid cautious and risk-off market sentiment.<\/span><\/p>\n Softer trading and investment income also sent the lender’s other non-interest income down 17 per cent on an annual basis.<\/span><\/p>\n For the quarter, the bank’s net profit declined to S$1.44 billion (US$1.14 billion) from S$1.49 billion a year earlier, though <\/span>it beat the mean estimate of nearly S$1.38 billion from three analysts polled by LSEG.<\/p>\n “While global uncertainty remains elevated, business activity held up across our key segments, with ongoing momentum in CASA, wealth, cards and loans,” said UOB CEO Wee Ee Cheong in a statement.<\/span><\/p>\n Net interest margin, a key gauge of profitability, fell to 1.82 per cent in the first quarter from 2.00 per cent in the same period a year earlier.<\/span><\/p>\n Wealth income rose 6 per cent year-on-year, while assets under management increased 5 per cent to S$198 billion.<\/span><\/p>\n UOB’s results came after larger rival <\/span>DBS Group last week reported stronger first-quarter earnings<\/span> that beat analysts’ forecasts, driven by growth in its wealth management business. Globally, <\/span>Standard Chartered also beat expectations last week with a 17 per cent profit rise, but <\/span>HSBC reported on Tuesday an unexpected US$400 million loss linked to the collapse of British mortgage lender Market Financial Solutions.<\/span><\/p>\n<\/div>\n