Net profit rose 6% YoY to $6.045 billion, while PAT margin (net profit / total income) reached 42.3%.

United Overseas Bank (UOB) posted a record net profit after tax of SGD 6.045 billion for FY2024, a 6% year-on-year increase underpinned by double-digit growth in fee income and robust trading gains, even as net interest margin contracted. The result exceeded the SGD 5.711 billion recorded in FY2023 and represents the highest annual profit in the bank's history.

Record Net Profit and Margin Profile

UOB's net profit after tax of SGD 6.045 billion for FY2024 translates into a profit-after-tax (PAT) margin of 42.3%, calculated against total operating income of SGD 14.294 billion. Profit before tax reached SGD 7.151 billion, up from SGD 6.863 billion in FY2023. Return on equity stood at 13.3%, marginal lower than the 13.4% recorded in FY2023.

Net Profit After Tax ($ millions) ($ millions)Source: Orionmano Industries

The five-year trajectory shows UOB's net profit has more than doubled from the pandemic trough of SGD 2.915 billion in FY2020, with consistent year-on-year growth since FY2021. The CAGR over this period stands at approximately 15.7%.

It is worth noting that some sources have cited a net profit figure of SGD 5.02 billion and a PAT margin of 44.8% for FY2024. These figures do not align with UOB's audited Annual Report 2024, which reports the SGD 6.045 billion figure directly from the Five-Year Group Financial Summary. Analysts should rely on the audited filings.

Revenue Drivers: Fee Income and Trading Surge

Total operating income grew 2.6% to SGD 14.294 billion in FY2024 from SGD 13.932 billion in FY2023. Net interest income held stable at SGD 9.674 billion, effectively unchanged year-on-year, as healthy loan growth of 5% offset the impact of net interest margin (NIM) compression. NIM narrowed 6 basis points to 2.03% from 2.09% in FY2023, reflecting the impact of interest rate movements on the bank's asset yields relative to funding costs.

The primary growth engine was non-interest income, which rose 8.6% to SGD 4.620 billion. Gross fee income increased 11% to SGD 3.2 billion, led by double-digit growth in wealth management fees driven by improved investor sentiment, stronger card fees from an enlarged regional franchise, and higher loan fees as lending and capital market activities picked up. Net fee and commission income reached SGD 2.395 billion.

Net trading income contributed SGD 1.689 billion, up from SGD 1.607 billion in FY2023, while net gains from investment securities surged to SGD 314 million from SGD 133 million. These two categories combined accounted for 14.0% of total operating income.

Source: Orionmano Industries

Net interest income remains the dominant revenue contributor at 67.7% of total operating income, though this share has declined as non-interest income streams gain traction.

Cost Discipline and Allowance Trends

Total operating expenses increased modestly by 1.5% to SGD 6.310 billion in FY2024 from SGD 6.217 billion in FY2023. Staff costs, the largest expense line, rose 4.1% to SGD 3.699 billion. Other operating expenses declined 2.0% to SGD 2.611 billion, reflecting disciplined cost management initiatives.

The cost-to-income ratio improved accordingly. Operating profit before allowance and amortisation increased to SGD 7.984 billion from SGD 7.715 billion.

Allowance for credit and other losses remained relatively stable at SGD 926 million versus SGD 921 million in FY2023. The bank's credit quality metrics demonstrated resilience, with the total allowance coverage reflecting prudent provisioning. Operating profit after allowance and amortisation rose to SGD 7.030 billion from SGD 6.770 billion.

Regional Segment Performance

Singapore, UOB's home market, delivered a record segment profit before tax of SGD 5.1 billion in FY2024, up 10% year-on-year. Non-interest income in Singapore soared 17% to SGD 2.7 billion as financial market volatility and consumer optimism generated trading opportunities, client hedging demand, retail wealth activities, and credit card billings. Net interest income eased 4% to SGD 5.4 billion amid competitive pricing pressure, partially offset by active balance sheet management and quality asset growth. The Singapore segment benefited from a reversal of general allowance as the portfolio remained resilient, while operating expenses were unchanged year-on-year.

The Wholesale Banking segment recorded profit before tax of SGD 4.4 billion, edging down 4% from a year ago on total income of SGD 6.7 billion. Total income dropped 5% mainly due to lower net interest margin, partially cushioned by record-high investment banking fees and improved treasury customer flows.

Indonesia faced headwinds: profit before tax in the second half of 2024 narrowed 66% year-on-year to SGD 36 million, stemming from credit allowance pressures and margin headwinds. These were partly offset by healthy asset expansion, stronger proprietary trading and investment income, and lower expenses. On a half-on-half basis against 1H24, Indonesia's profit before tax doubled, led by double-digit growth in cards and wealth management fees, though partially offset by higher credit allowance.

Outlook

With net fee income momentum and stable loan growth, UOB is positioned to navigate margin compression in FY2025, though regional credit conditions and geopolitical volatility remain key watchpoints for profit sustainability. Early indications from Q1 2026 results, which showed net profit declining 4% year-on-year to SGD 1.4 billion amid softer fee and interest income, underscore the challenges of a lower rate environment and cautious market sentiment. However, the bank's diversified income base and disciplined cost management provide buffers against external headwinds.