Rebounding of a country’s financial sector, indicates the economic health of that nation and this is applicable to Asian economic power house Singapore as well.
United Overseas Bank (UOB)’s reported profit increase and accompanied growth prospects even within the first quarter reaffirms that the Singapore’s economy regaining its lost momentum.
Financial sector suffered heavily, primarily, due to the lockdown and social restriction measures as well as the resultant economic contraction due to the global pandemic.
United Overseas Bank, reported an 18% increase in first-quarter net profit, augmented by strong fee income growth, a decline in impairment charges and strong credit demand.
“We expect this momentum to continue as economic and business activity picks up and market sentiment improves across the region, starting with Singapore and Greater China,” CEO Wee Ee Cheong said in a statement.
The results came following larger peer DBS Group overwhelmed profit estimates last week, due to strong loan growth, improved asset quality and a bumper quarter for its wealth management business. OCBC reports results.
UOB reported net profit of S$1 billion for the quarter ending in March, beating the S$891.4 million average of two analysts’ estimates compiled by Refinitiv, and compared with S$855 million in the year-ago period.
Since its incorporation in 1935, UOB’s global footprint has expanded through both organic growth and through a series of strategic acquisitions. Today, UOB has an unrivalled presence in Southeast Asia backed by a global network of more than 500 offices.
Having a diverse regional franchise enables UOB to serve customers ranging from consumers to large multinational corporates and to meet the cross-border needs of companies doing business in this region.
The Bank’s established regional network includes wholly-owned banking subsidiaries in the key markets.
Some of its overseas branches include United Overseas Bank (China) Limited, PT Bank UOB Indonesia, United Overseas Bank (Malaysia) Bhd, United Overseas Bank (Thai) Public Company Limited; and United Overseas Bank (Vietnam) Limited. The banking services offered by UOB are complemented by a suite of related products and services provided through its financial services subsidiaries.
What is noteworthy is the fact the banks phenomenal increase in profit attributed to the vital growth in key segments such as substantial improvement in asset quality and record profits in its wealth management business. Given UOB’s global presence with overseas branches, its growth prospects would be brighter than expected as economies recover from the pandemic-induced contraction.