By P.R. Venkat

United Overseas Bank Ltd. second-quarter net profit rose 43% on year due to lower credit allowances and higher interest and fee income.

Net profit for the quarter came in at 1.00 billion Singapore dollars (US$740 million) and total income grew 7% on year at S$2.42 billion, the bank said Wednesday.

Net interest income during the period was up 8% on year at S$1.53 billion, while non-interest income rose 34% at S$595 million.

Fee income was mainly driven by stronger momentum in wealth management and fund management business, the bank said.

Total allowances during the first half fell to S$383 million from S$682 million in the same period last year as many banks set aside a large portion of money to cover Covid-19 related losses.

UOB said that it will pay 60 Singapore cents per share as interim dividend that would translate to a dividend payout ratio of 50%.

Post dividend, the group's balance sheet remains in a "solid position," it said.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

08-03-21 2001ET