By Amanda Lee
United Overseas Bank's first-quarter net profit fell on a softer operating environment.
Net profit for the three months ended March fell 3.6% from the same period a year ago to 1.44 billion Singapore dollars, equivalent to US$1.14 billion, the Singapore lender said Thursday.
Total income was S$3.42 billion, down 6.4% from a year earlier.
Net interest income -- the difference between what banks earn on loans and pay on deposits -- dropped 3.5% to S$2.32 billion, due to lower benchmark rates.
Net fee income declined 8.2% to S$637 million from last year's record high, as investment banking and loan-related activities moderated amid cautious risk-off market sentiment, the bank said.
Other noninterest income decreased 17% to S$462 million, mainly due to softer trading and investment income, it added.
"The group delivered a steady performance in the first quarter, reflecting the underlying strength of our core business and diversified income streams," said Wee Ee Cheong, UOB's deputy chairman and chief executive.
With the bank's regional footprint and deep Asean connectivity, it is prepared to support its customers amid a more uncertain operating environment, Wee added.
Last week, larger rival DBS Group posted better-than-expected net profit for the first quarter, driven by strong wealth-management performance. Peer Oversea-Chinese Banking Corp. is scheduled to report its earnings on Friday.
Write to Amanda Lee at amanda.lee@wsj.com
(END) Dow Jones Newswires
05-06-26 2003ET
