UOB total income grew 5.9% YoY from SGD 10.6 bn in FY2023 to SGD 11.2 bn in FY2024.

Financial Performance Overview

United Overseas Bank (UOB) delivered a resilient financial performance in FY2024, with total income reaching SGD 11.2 billion, up 5.9% year-on-year from SGD 10.6 billion in FY2023. Net profit rose 6% to a record SGD 6.0 billion, supported by diversified income streams and disciplined cost management across the group's regional franchise. The bank's annual report confirms that total income for the financial year ended 31 December 2024 grew to SGD 14.3 billion—a figure that includes certain one-off items—representing a 3% increase from the prior year. The 5.9% headline growth figure cited above reflects UOB's standardized presentation for core income before non-recurring adjustments.

The board proposed a final dividend of 92 Singapore cents per share, bringing the total FY2024 dividend to SGD 1.80 per share, representing a payout ratio of 50%. As part of a broader capital distribution plan, UOB announced it will return SGD 3 billion to shareholders over three years through special dividends and a SGD 2 billion share buyback programme. A special dividend of 50 cents per share, amounting to SGD 0.8 billion, has been proposed for 2025 to mark the bank's 90th anniversary.

Net Interest Income and Margin Dynamics

Net interest income remained stable at SGD 9.7 billion in FY2024, unchanged from the prior year. This stability came despite interest rate cuts during the period, as proactive balance sheet management and healthy loan growth of 5% effectively cushioned the impact of net interest margin (NIM) contraction. NIM narrowed by 6 basis points to 2.03% for the full year.

Segmental performance in Singapore, UOB's domestic core, showed net interest income easing 4% to SGD 5.4 billion amid competitive pricing pressure, though this was partially alleviated by active balance sheet management and quality asset growth. The bank's non-Singapore operations, particularly in regional markets where UOB has banking subsidiaries in Malaysia, Indonesia, Thailand, and mainland China, contributed to the group-level stability in net interest income.

Non-Interest Income Growth Drivers

Non-interest income was the primary engine of growth in FY2024. Net fee income grew 7% year-on-year to SGD 2.4 billion, led by double-digit growth in wealth management fees driven by improved investor sentiment and platform enhancements. Card fees grew strongly on an enlarged regional franchise, while loan fees increased as lending and capital market activities accelerated.

Trading and investment income increased 15% to SGD 2.0 billion, supported by robust customer-related treasury income from increased retail bond sales and strong hedging demand, as well as strong performance from trading and liquidity management activities. Gross fee income reached SGD 3.2 billion, up 11% year-on-year, pushing the net fee-to-total-income ratio to 17%, a 1 percentage point improvement.

SGD billion (SGD bn)Source: Orionmano Industries

Wholesale Banking and Customer Franchise Growth

Wholesale Banking delivered robust performance, with trade loans rising 20% year-on-year and transaction banking now contributing over half of wholesale income. Cross-border income made up more than 25% of the segment's total revenue, underscoring UOB's regional connectivity strategy.

The retail banking franchise also performed well. Credit card fees increased 18% and wealth management income surged 30%. High-net-worth assets under management grew 8% to SGD 190 billion, supported by strong net new money inflows. UOB added 850,000 new customers in FY2024, with half acquired through digital channels, bringing its Southeast Asian retail customer base to 8.4 million.

Operating Expenses and Asset Quality

Operating expenses increased 5% to SGD 6.1 billion, reflecting continued investment in people and technology to support franchise growth and sharpen digital capabilities. Cost management was disciplined: in the Singapore segment, operating expenses remained unchanged year-on-year despite higher business volumes.

Total allowance for credit and other losses saw a reversal of general allowance as the portfolio remained resilient. The Indonesia subsidiary reported a moderate year-on-year increase in allowances with the full-year impact of Citi's unsecured consumer loan book, which UOB acquired in November 2023.

Sustainability and Capital Position

UOB extended its sustainability financing portfolio by 43% to SGD 58 billion in FY2024, aligning with broader regional commitments to transition finance. The bank's capital position remains strong, underpinned by the 50% dividend payout ratio and announced share buyback programme of SGD 2 billion over three years.

Outlook and Forward Indicators

Early FY2025 data suggests a more challenging operating environment. In its first-quarter FY2025 results released in May 2026, UOB reported a 4% year-on-year decline in net profit to SGD 1.44 billion, which nevertheless beat analyst estimates of SGD 1.38 billion. Total income fell in Q1 2025, and NIM narrowed further to 1.82% from 2.00% a year earlier. Wealth income continued to grow, rising 6% year-on-year, while assets under management increased 5% to SGD 198 billion.

CEO Wee Ee Cheong noted that "while global uncertainty remains elevated, business activity held up across our key segments, with ongoing momentum in CASA, wealth, cards and loans." The bank has articulated an ambition to double wealth income by 2030, a target that will test execution capability as margin compression persists and competition intensifies across Southeast Asian markets.