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Investing.com-- United Overseas Bank (SGX:UOBH) reported higher fourth-quarter profit on Wednesday as strong wealth management and credit card fees helped offset softer loan margins.
The Singapore lender also announced a S$3 billion ($2.24 billion) capital return plan, including special dividends and a share buyback program.
Net profit for the October-December period climbed 9% from a year earlier to S$1.52 billion. Total (EPA:TTEF) income for the quarter rose 1% year-on-year, while net interest income gained 2% on steady loan growth.
For the full year, UOB posted a record net profit of S$6.0 billion, up 6% from 2023. Net fee income increased 7%, supported by robust wealth management and credit card transactions, while trading and investment gains also boosted earnings.
Asset quality remained stable, with the non-performing loan ratio at 1.5%, the company said in a statement.
The bank’s S$3 billion capital return plan includes a S$0.8 billion special dividend of 50 SG cents per share in 2025, coinciding with its 90th anniversary. A new S$2 billion share buyback program was also introduced.
The bank proposed a final dividend of 92 SG cents per share, bringing its total payout for 2024 to S$1.80 per share, or about half of its earnings.
CEO Wee Ee Cheong said UOB’s regional expansion strategy was delivering results, with cross-border income now making up over a quarter of its wholesale banking revenue.
“Despite global uncertainties, we are confident that the ASEAN region will remain resilient, supported by higher domestic retail spending and stronger influx of foreign direct investment.," Cheong said in a statement.