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Investing.com-- United Overseas Bank (SGX:UOBH) on Thursday clocked a weaker-than-expected net profit for the June quarter, as the Singaporean lender saw weaker margins due to pressure from lower interest rates.
UOB’s Q2 net profit fell 6% year-on-year to S$1.34 billion ($1 billion), missing Bloomberg estimates of S$1.48 billion.
Net interest income fell 3% y-o-y to S$2.34 billion. The print was pressured chiefly by falling interest rates across UOB’s main markets, which in turn hurt its margins.
Still, UOB’s non-interest incomes clocked steady growth in the quarter, helped by strong wealth management returns and customer-related treasury income.
UOB declared an interim dividend of 85 cents per share, down from 88 cents seen a year earlier.
CEO and deputy Chairman Wee Cheong said UOB’s core region, the ASEAN group of countries, remained economically sound despite near-term headwinds from trade tariffs and economic uncertainty.
The bank’s earnings were hit by a slew of major Asian central banks cutting interest rates this year, largely over economic headwinds presented by higher U.S. trade tariffs.
The Monetary Authority of Singapore eased policy twice so far in 2025, but kept policy unchanged in late-July amid some surprise resilience in the economy.