UOB Third-Quarter Profit Jumps 182.2%, Misses Forecast
UOB’s net profit rose 182.2 per cent to S$1.25 billion in the third quarter ended September 30, 2026, but fell short of analysts’ S$1.38 billion consensus forecast. Record fee income and lower credit-loss allowances supported the increase, while net interest margin narrowed and other non-interest income declined.
United Overseas Bank (UOB) reported a 182.2 per cent rise in third-quarter net profit to S$1.25 billion in Singapore for the quarter ended September 30, 2026, but the result missed analysts’ S$1.38 billion consensus forecast. The increase was supported by record fee income and a sharp drop in credit-loss allowances.
The bank’s profit was up from S$443 million a year earlier, when earnings had been hit by heavier allowances. UOB’s latest results show how a lower comparison base helped lift the headline figure even as some income measures weakened.
Net interest income edged up one per cent to S$2.28 billion from S$2.27 billion in the same quarter last year. Net interest margin, a measure of lending profitability, narrowed to 1.68 per cent from 1.82 per cent.
That margin decline matters because it reflects the return UOB earns from lending relative to the cost of funding. The bank’s small increase in net interest income came alongside the lower margin, while fee-generating businesses provided a stronger contribution to quarterly earnings.
Record fee income helped.
Net fee income climbed 19 per cent year on year to S$733 million from S$615 million. UOB said growth came from its wealth, cards and loan-related businesses. Customer-related treasury income also reached a new high, driven by strong demand for hedging solutions.
For customers and investors, the results point to different forces shaping the bank’s performance: wealth and transaction-related fees strengthened, while the narrower margin and weaker trading and investment income weighed on other parts of the business. The headline profit increase also needs to be read against the unusually high credit-loss charges recorded a year earlier.
Allowances for credit and other losses fell 81 per cent to S$258 million, from S$1.36 billion in the third quarter of 2025. In that earlier quarter, UOB’s net profit had plunged 72 per cent amid macroeconomic uncertainties and sector-specific headwinds.
Other non-interest income moved in the opposite direction, falling 29 per cent to S$370 million from S$518 million. UOB attributed the decline to lower trading and investment income.
The bank’s non-performing loan ratio improved to 1.5 per cent from 1.6 per cent a year earlier. Earnings per share reached S$2.98, up from S$1.01.
UOB’s net profit nevertheless came in below the S$1.38 billion consensus forecast among six analysts polled. Its shares closed 0.5 per cent, or S$0.20, lower at S$40.46 on Tuesday.
DBS and OCBC are scheduled to release their third-quarter results on Thursday and Friday, respectively.
