Supported by resilient franchise amid market volatility
UOB Group (UOB) posted S$1.4 billion in net profit for the first quarter of 2026 (1Q26), up 2% quarter on quarter (QoQ), but eased 4% year on year (YoY), reflecting a softer operating environment following last year's solid performance in the same quarter.
The Group's 1Q26 performance was supported by our resilient
franchise across our Group Retail, Group Wholesale Banking and
1Q26 key financial indicators
Net profit after tax S$1.4b | AUM S$198b | |
+ 2% QoQ - 4% YoY | - 1% QoQ + 5% YoY | |
Global Markets businesses, notably in CASA, wealth, card billings, loan growth and customer-related treasury income.
Net interest income for 1Q26 moderated from the year before as healthy loan growth of 4% helped to cushion the impact of margin
Net Fee Income
S$637m
+ 2% QoQ
- 8% YoY
Trading & Investment Income
S$405m
+ 88% QoQ
- 13% YoY
pressures from the continued lower interest rate environment.
On a QoQ basis, net fee income grew 2% to S$637 million, driven by momentum in wealth and capital market activities. On a YoY basis, net fee income eased 8% against last year's record high reflecting a more cautious and risk-off market sentiment.
Customer Loans
S$354b
Unchanged QoQ
+ 4% YoY
Cost/Income ratio
44.5%
- 1.9% pt QoQ
+ 1.9% pt YoY
Other non-interest income rose 45% QoQ to S$462 million, led by
stronger customer treasury income and prudent liquidity management, with trading activities benefitting from the market volatility during this quarter.
Credit costs for 1Q26 stayed within expectations at 26 basis points, with non-performing loan ratio stable at 1.5%. The Group's balance sheet remained robust with ample liquidity and Common Equity Tier 1 ratio at 15.3%.
NPL ratio
1.5%
Unchanged QoQ
- 0.1% pt YoY
CET 1 ratio
15.3%
+ 0.2% pt QoQ
- 0.2% pt YoY
Resilient performance supported by diversified franchise"
The Group delivered a steady performance in the first quarter, reflecting the underlying strength of our core business and diversified income streams. Asset quality was resilient and our balance sheet stayed strong with robust capital and liquidity ratios.
Mr. Wee Ee Cheong, Deputy Chairman and
Chief Executive Officer, UOB
While global uncertainty remains elevated, business activity held up across our key segments, with ongoing momentum in CASA, wealth, cards and loans. Leveraging our regional footprint and deep ASEAN connectivity, we stand ready to support our customers as they navigate a more uncertain operating environment.
Looking ahead, we will focus on deepening relationships across our enlarged ASEAN customer base, strengthening ecosystem partnerships and helping our customers capture opportunities for long-term growth.
. "
1Q26 S$'m | 4Q25 S$'m | QoQ +/(-)% | 1Q25 S$'m | YoY +/(-)% |
2,324 | 2,346 | (1) | 2,409 | (4) |
637 | 625 | 2 | 694 | (8) |
462 | 319 | 45 | 554 | (17) |
3,422 | 3,289 | 4 | 3,657 | (6) |
1,523 | 1,528 | (0) | 1,559 | (2) |
1,899 | 1,761 | 8 | 2,097 | (9) |
7 | 7 | (0) | 7 | (0) |
203 | 113 | 81 | 290 | (30) |
23 | 35 | (35) | 22 | 5 |
1,712 | 1,677 | 2 | 1,822 | (6) |
274 | 266 | 3 | 332 | (17) |
1,437 | 1,410 | 2 | 1,490 | (4) |
Net interest income Net fee income
Other non-interest income
Total income
Less: Total expenses
Operating profit
Less: Amortisation of intangible assets Allowance for credit and other losses
Add: Associates and joint ventures
Net profit before tax
Less: Tax & non-controlling interests
Net profit
1Q26 versus 4Q25
1Q26 net profit was stable at S$1.4 billion, reflecting the resilience of the Group's franchise amid heightened market volatility. Performance was supported by broad-based income contributions and continued business expansion across key segments.
Net interest income moderated slightly to S$2.3 billion primarily due to a shorter quarter, while net interest margin narrowed 2bps to 1.82% amid continued margin pressures. These effects were partially offset by disciplined funding cost management, active balance sheet optimisation and modest asset growth. Net fee income increased 2% to S$637 million, underpinned by higher capital market activities and sustained momentum in wealth, notwithstanding a normalisation of card fees following the prior quarter's seasonal peak. Other non-interest income rose 45% to S$462 million from the year-end seasonal low, supported by stronger customer treasury income and prudent liquidity management, with trading activities benefitting from market volatility.
Total expenses were broadly unchanged at S$1.5 billion, with the cost-to-income ratio improving from 46.4% to 44.5%, reflecting ongoing cost discipline alongside continued investments in regulatory requirements and strategic initiatives to support long-term franchise growth. Total allowance increased to S$203 million mainly from lower write-back of general allowance, resulting in total credit costs on loans of 26 basis points.
1Q26 versus 1Q25
Net profit for the quarter declined 4% year on year to S$1.4 billion, reflecting a softer operating environment following last year's strong performance.
Net interest income fell 4% to S$2.3 billion, driven by lower benchmark rates, although underlying franchise momentum remained resilient, with healthy loan growth of 4%. Net fee income eased 8% to S$637 million from last year's record high as investment banking and loan-related activities moderated amid cautious, risk-off market sentiment. Other non-interest income was also lower, mainly due to softer trading and investment income.
Total expenses decreased 2% to S$1.5 billion in line with income moderation and ongoing cost discipline. Total allowance declined mainly due to lower general allowance.
Allowance coverage
24
26
30 30 30
Asset quality0.8 0.8 1.0 1.0 1.0
The Group's non-performing loan (NPL) ratio
was unchanged at 1.5%.
4,829 4,765
379 379
Mar-25 Jun-25
5,787
Sep-25
5,268 5,251
379 379
Dec-25 Mar-26
Coverage levels continued to be sound and adequate, with performing loans coverage maintained at 1.0% and non-performing assets (NPA) coverage at 100% or 272% after taking collateral into account.
2,776
1,366
1,332
1,617 1,610 1,744
2,833
3,506
3,557
3,664
379
NPL ratio (%) 1.6 1.6 1.6 1.5 1.5
Total credit costs 35 32 134 19 26
on loans (bps)
Specific allowance ($m) General allowance ($m) RLAR ($m)Specific allowance/NPA (%) General allowance on loans include RLAR/Performing loans (%)
Capital, funding and liquidity positions
Liquidity and capital ratios
143 141 143 147 144
The Group's capital position remained solid with Common Equity Tier 1 (CET1) ratio at 15.3%.
116
118
116
116
115
84.0 | 83.7 | 82.5 | 81.7 | 81.9 |
Mar-25 | Jun-25 | Sep-25 | Dec-25 | Mar-26 |
Liquidity metrics stayed robust with the average all-currency liquidity coverage ratio (LCR) at 144% and net stable funding ratio (NSFR) at 115%, both well above regulatory requirements.
CET1
ratio (%)
15.5 15.3 14.6 15.1 15.3
All-currency LCR (%) NSFR (%) LDR (%)For more information about UOB, please visit https://www.UOBGroup.com.
Disclaimer: This material that follows is a presentation of general background information about the Bank's activities current at the date of the presentation. It is information given in summary form and does not purport to be complete. It is not to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. This material should be considered with professional advice when deciding if an investment is appropriate. UOB accepts no liability whatsoever with respect to the use of this document or its content.
Singapore Company Registration Number: 193500026Z
Financial Highlights 1Q26 | |||||
1Q26 | 4Q25 | +/(-) % | 1Q25 | +/(-) % | |
Selected income statement items (S$m) | |||||
Net interest income | 2,324 | 2,346 | (1) | 2,409 | (4) |
Net fee income | 637 | 625 | 2 | 694 | (8) |
Other non-interest income | 462 | 319 | 45 | 554 | (17) |
Total income | 3,422 | 3,289 | 4 | 3,657 | (6) |
Less: Total expenses | 1,523 | 1,528 | (0) | 1,559 | (2) |
Operating profit | 1,899 | 1,761 | 8 | 2,097 | (9) |
Less: Amortisation of intangible assets | 7 | 7 | (0) | 7 | (0) |
Allowance for credit and other losses | 203 | 113 | 81 | 290 | (30) |
Add: Share of profit of associates and joint ventures | 23 | 35 | (35) | 22 | 5 |
Net profit before tax | 1,712 | 1,677 | 2 | 1,822 | (6) |
Less: Tax and non-controlling interests | 274 | 266 | 3 | 332 | (17) |
Net profit 1 | 1,437 | 1,410 | 2 | 1,490 | (4) |
Selected balance sheet items (S$m) | |||||
Gross customer loans | 353,837 | 352,180 | 0 | 341,154 | 4 |
Customer deposits | 426,731 | 425,938 | 0 | 401,250 | 6 |
Total assets | 574,233 | 572,061 | 0 | 538,009 | 7 |
Shareholders' equity 1 | 52,719 | 51,248 | 3 | 51,406 | 3 |
Risk-weighted assets | 278,459 | 275,900 | 1 | 268,998 | 4 |
Key financial ratios (%) | |||||
Net interest margin 2 | 1.82 | 1.84 | 2.00 | ||
Cost/Income ratio | 44.5 | 46.4 | 42.6 | ||
Credit costs on loans (bp) 2 | |||||
General | (3) | (7) | 16 | ||
Specific | 29 | 26 | 19 | ||
Total | 26 | 19 | 35 | ||
NPA coverage ratio | 100 | 97 | 90 | ||
NPL ratio 3 | 1.5 | 1.5 | 1.6 | ||
Return on average ordinary shareholders' equity 2,4 | 11.5 | 11.6 | 12.3 | ||
Return on average total assets 2 | 1.01 | 1.01 | 1.11 | ||
Loan/Deposit ratio 5 | 81.9 | 81.7 | 84.0 | ||
Liquidity coverage ratios ("LCR") 6,10 | |||||
All-currency | 144 | 147 | 143 | ||
Singapore Dollar | 379 | 354 | 403 | ||
Net stable funding ratio ("NSFR") 7,10 | 115 | 116 | 116 | ||
Capital adequacy ratios | |||||
Common Equity Tier 1 | 15.3 | 15.1 | 15.5 | ||
Tier 1 | 16.6 | 16.1 | 16.6 | ||
Total | 17.9 | 17.7 | 18.2 | ||
Leverage ratio 8 | 7.0 | 6.7 | 7.3 | ||
Earnings per ordinary share ($) 2,4 | |||||
Basic | 3.41 | 3.36 | 3.51 | ||
Diluted | 3.40 | 3.34 | 3.49 | ||
Net asset value ("NAV") per ordinary share ($) 9 | 29.79 | 29.36 | 29.07 | ||
Notes:
Relates to amount attributable to equity holders of the Bank.
Computed on an annualised basis.
Refers to non-performing loans ("NPL") as a percentage of gross customer loans.
Calculated based on profit attributable to equity holders of the Bank net of perpetual capital securities distributions.
Refers to net customer loans and customer deposits.
Figures reported are based on average LCR for the respective periods, calculated based on MAS Notice 651. A minimum requirement of Singapore Dollar LCR of 100% and all-currency LCR of 100% shall be maintained at all times.
NSFR is calculated based on MAS Notice 652 which requires a minimum of 100% to be maintained.
Leverage ratio is calculated based on MAS Notice 637 which requires a minimum ratio of 3%.
Perpetual capital securities are excluded from the computation.
Public disclosure required under MAS Notice 651 and 653 are available in the UOB website at https://www.UOBgroup.com/investor-relations/financial/index.html.