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UOB sees stronger 2024 outlook, Q3 web revenue trails estimate



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The United Abroad Financial institution (UOB) constructing is pictured within the Raffles Place monetary district in Singapore on August 10, 2023.

Roslan Rahman | Afp | Getty Pictures


Singapore’s United Overseas Bank, or UOB, anticipated a stronger outlook for subsequent 12 months together with higher mortgage and charges progress, because it reported on Thursday a weaker-than-expected 1% drop in third-quarter web revenue from a 12 months earlier.

UOB, Singapore’s third-largest financial institution by belongings, projected mid single-digit mortgage progress and double-digit payment progress for its 2024 outlook, versus low-to-mid single-digit mortgage progress and excessive single-digit charges progress for this 12 months’s outlook.


The financial institution, Southeast Asia’s third-biggest, additionally projected margins to stay at present ranges for 2024, however foresaw credit score value at round 25 to 30 foundation factors for subsequent 12 months versus simply round 25 foundation factors for remainder of 2023.

“The macroeconomic surroundings might stay bumpy,” mentioned Wee Ee Cheong, UOB’s deputy chairman and CEO. “Nonetheless, we count on the ASEAN area to remain resilient. Shopper sentiments stay sturdy and rising funding flows into the area will bolster progress.”


UOB mentioned July-September web revenue dropped to S$1.38 billion ($1 billion) from S$1.40 billion a 12 months earlier, primarily on the again of upper allowances for credit score and different losses, in addition to Citigroup integration prices.

The revenue was decrease than the imply estimate of S$1.46 billion from 4 analysts polled by LSEG.

UOB's CFO discusses the bank's second-quarter earnings

Final 12 months, UOB acquired Citigroup’s shopper enterprise in 4 Southeast Asian markets for about S$5 billion, its greatest deal in twenty years. When accomplished, the transfer will double its retail buyer base in these markets.

“Our Citigroup integration is on monitor,” Wee mentioned. “Integration for Indonesia, Thailand and Vietnam is progressing as deliberate after we efficiently migrated all Citigroup prospects in Malaysia to our platform.”

UOB reported a web curiosity margin, a key gauge of profitability, of two.09% for the third quarter, up from 1.95% in the identical interval a 12 months earlier.


Singapore banks have benefited from sturdy influx of wealth drawn by the city-state’s relative political stability, low taxes, and insurance policies favorable for organising funds.

Nonetheless, UOB’s Wee mentioned international financial system stays unsure and up to date geopolitical tensions have added to market volatilities.

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