Singapore's United Overseas Bank reported fourth-quarter net profit of S$1.41 billion, falling short of the S$1.45 billion consensus estimate as lower trading income and margin pressures offset steady loan growth. The result marked a 7% decline from the S$1.52 billion posted a year earlier, though it showed a sharp improvement from the previous quarter when earnings were hit by large pre-emptive provisions.

Operating profit fell 5% year-on-year to S$1.76 billion, reflecting weaker non-interest income as trading and investment gains normalized from elevated levels. Net interest income held steady at S$2.35 billion, supported by modest loan growth and improved funding costs, while net fee income rose 10% to S$625 million on higher card and wealth fees. Credit costs eased after the third-quarter provision, with total allowances dropping to S$113 million and loan credit cost at 19 basis points.

For the full year, UOB posted net profit of S$4.68 billion, down 23% after earlier provisioning. The bank proposed a final dividend of 71 Singapore cents per share, taking the total FY25 payout to S$1.56 per share. The earnings miss highlights challenges facing Singapore banks as trading income normalizes and margin pressures persist in a changing interest rate environment.