SINGAPORE: United Overseas Bank (UOB) reported net profit of S$788 million for the fourth quarter of 2015, up 0.3 per cent from a year ago, helped by higher interest margins and trading and investment income. For the full year, UOB reported net earnings of S$3.21 billion, down 1.2 per cent from a year ago, as prior year results included a higher write-back of tax provisions. Total income for 2015 grew 7.9 per cent to reach S$8.05 billion. Net interest income rose 9.3 per cent to S$1.28 billion for the quarter, helped by a 10 basis point increase in interest margins to 1.79 per cent. Non-interest income in the last three months of 2015 rose 17.9 per cent on-year to S$803 million, on the back of a 64.3 per cent jump in trading and investment income. However, higher incomes were offset by an increase in provisions for bad loans. Total allowances were S$190 million in the fourth quarter, 14.6 per cent higher than a year ago. Specific allowances on loans rose 58.1 per cent to S$115 million, largely due to non-performing accounts in Singapore, Indonesia and Greater China. UOB's Deputy Chairman and CEO Wee Ee Cheong said: "Financial markets will continue to grapple with volatility and uncertainty in 2016 underpinned by ongoing concerns such as the impact of falling oil prices and China's slowdown. Our view is that the risks are largely manageable and the underlying economic fundamentals are strong enough to withstand the shocks even as we enter an environment of slower growth."
UOB - 4Q15 net profit of SGD 788m ($64.3 per cent), up 0.3% YoY, boosted by higher interest margins and trading and investment income, but offset by an increase in provisions for bad loans.