UOB(US:UOVEY) Jin Tou Wang·2025-08-12 04:46Financial Performance - The bank reported a strong operating profit of SGD 4 billion (approximately RMB 22.4 billion) for the first half of 2025, representing a 3% increase compared to the same period last year, driven by robust fee income and effective cost management [1] - Net interest income remained stable year-on-year, with total loans growth offsetting the pressure from declining benchmark interest rates [1] - Non-interest income saw significant growth, with fee income increasing by 11%, primarily from wealth management, loan-related services, and credit card businesses [1] Business Segments - Corporate banking experienced a 12% decline in pre-tax profit due to lower interest rates and intensified competition for quality assets, although investment banking fees reached a record high [3] - Retail banking showed strong performance with pre-tax profit of SGD 1.1 billion (approximately RMB 6.1 billion), an 11% increase year-on-year [3] - Cross-border income remained stable, accounting for 26% of corporate banking revenue, highlighting the bank's strengths in regional trade networks [3] Asset Quality - The bank maintained a solid asset quality with a half-year credit cost of 34 basis points and a non-performing loan (NPL) ratio of 1.6% as of June 30, 2025 [5] - The non-performing asset (NPA) coverage ratio stood at 88%, and when accounting for collateral, the NPL coverage ratio reached 209% [5] - The bank's prudent risk management approach is reflected in a non-NPL coverage ratio of 0.8% [5] Strategic Outlook - The bank's leadership expressed confidence in the long-term growth prospects of the ASEAN region, emphasizing its solid fundamentals and regional collaboration advantages [3] - The bank is focused on transforming its business model to create a more diversified growth structure centered on fee income, leveraging its regional connectivity and business network [3][5]