UOB FY2024 ROE Hits 13.3% as Bank Nears 14% Target Amid Record Net Profit
Annual report confirms 13.3% ROE, below the 14% target for 2026, but net profit reached a record S$6.0 billion.
By Natalie Wong·April 18, 2026·4 min readOrionmano Industries
Annual report confirms 13.3% ROE, below the 14% target for 2026, but net profit reached a record S$6.0 billion.
FY2024 ROE Performance and Profit Growth
UOB's FY2024 return on equity of 13.3%, though slightly below the 14% medium-term target, underscores resilient earnings powered by record net profit and strong fee income growth. The ROE edged down from 13.4% in FY2023, a marginal decline of 0.1 percentage point, according to the bank's annual report.
Net profit after tax reached a record S$6.0 billion in FY2024, up 6% year-on-year from S$5.7 billion in FY2023. This profit growth was driven by a 11% increase in gross fee income to S$3.2 billion, led by double-digit growth in wealth management fees from improved investor sentiment, alongside stronger card fees from the enlarged regional franchise and higher loan fees as lending and capital market activities picked up. Trading and investment income also contributed to the profit boost, the annual report stated.
The ROE trajectory shows a sharp recovery from 11.2% in FY2022 to 13.4% in FY2023 before stabilising at 13.3% in FY2024. The bank's core return on equity—excluding one-off expenses related to the acquisition of Citigroup's consumer banking business—stood at 14.0% in the first quarter of 2024, as reported in the bank's Q1 2024 performance highlights.
Exhibit
UOB Return on Equity (FY2022–FY2024)
ROE remained near 13% after a sharp recovery from 11.2% in 2022.
Return on Equity (%) (%)Source: Orionmano Industries
Revenue Composition and Non-Interest Income Progress
Total operating income for FY2024 was S$14.294 billion, up 3% from S$13.932 billion in FY2023, according to the bank's selected financial statements. Net interest income was S$9.674 billion, essentially flat year-on-year, while net interest margin declined 0.14 percentage points to 1.89% in FY2025 as of the bank's March 2026 investor presentation. Non-interest income grew 9% to S$4.620 billion, driven by net fee and commission income of S$2.395 billion (up 7%) and net trading income of S$1.689 billion (up 5%).
Non-interest income represented 32.3% of total revenue in FY2024, below the bank's 2026 target of 37%. UOB aims to diversify income by increasing non-interest income to 37% of total revenue, driven by wealth, trade, and customer treasury. The bank's non-interest income share has remained relatively stable, with the March 2026 investor presentation showing it at 32.2% in FY2025 versus 32.3% in FY2024.
Other non-interest income components included rental income of S$101 million, net gain from investment securities of S$314 million, and other income of S$121 million for FY2024.
Exhibit
UOB Total Revenue Composition FY2024
Net interest income still dominant; non-interest income at 32.3%.
%Source: Orionmano Industries
Capital Strength and ROE Sustainability
UOB's capital position strengthened significantly during FY2024. The Common Equity Tier 1 (CET1) ratio rose to 15.5% at end-FY2024, up from 13.4% a year earlier, according to the condensed financial statement for 4Q2024 results. The total capital adequacy ratio reached 18.2%, compared to 16.6% in FY2023. This capital build positions the bank to support its growth ambitions and maintain dividend payouts while pursuing its strategic targets.
The bank targets a sustainable ROE of around 14% by 2026, with a cost-to-income ratio in the low 40s percent. The cost-to-income ratio stood at 44.1% in FY2024 and 44.6% in FY2025, as per the March 2026 investor presentation, indicating the bank has room to improve efficiency to meet its medium-term goal.
UOB's strategy to achieve these targets rests on three pillars: accelerating ASEAN growth to 30% of group income while maintaining 50% from Singapore, diversifying non-interest income to 37% of revenue, and optimising the cost structure to achieve a cost-to-income ratio in the low 40s percent. These targets were unveiled at the bank's Corporate Day in Kuala Lumpur, where analysts from CGS International Research and UBS Investment Research noted that the targets appeared "encouraging" and "above expectations" respectively, while emphasising that execution would be key.
The bank's performance in a normalising interest rate environment will be critical. With net interest margin declining to 1.89% in FY2025 from 2.03% in FY2024, the pressure on net interest income is evident. UOB's ability to sustain ROE at 14% hinges on executing its ASEAN connectivity strategy, growing non-interest income share, and maintaining cost discipline amid these headwinds. The bank's strong capital buffer—with CET1 exceeding 15%—provides a solid foundation for this transition.
