Fee income growth and stable net interest income power record results; wealth management emerges as key driver.

Consistent Income Growth Across the Cycle

UOB's total income surged to S$14.3 billion in FY2024, representing a compound annual growth rate of 13.4% from FY2021 to FY2024, driven by robust fee income growth and stable net interest income. The bank's five-year income trajectory demonstrates a steady acceleration from pre-pandemic levels, with total income rising from S$9.18 billion in FY2020 to S$9.79 billion in FY2021, before accelerating to S$11.58 billion in FY2022, S$13.93 billion in FY2023, and reaching S$14.29 billion in FY2024. The FY2024 figure represents a 3% increase year-on-year, with net profit rising 6% to a record S$6.05 billion.

The growth trajectory has not been linear, however. In the first quarter of FY2025, total income fell 6.4% year-on-year to S$3.42 billion, reflecting a softer interest rate environment and cautious market sentiment. This near-term pullback underscores the bank's sensitivity to macroeconomic conditions, even as its long-term income base has nearly doubled from FY2020 levels.

Total Income (S$ million) (S$ million)Source: Orionmano Industries

Fee Income Drives Diversification

Net interest income remained stable at S$9.67 billion in FY2024, as proactive balance sheet management and loan growth of 5% cushioned the impact of rate cuts. The stable net interest income base provided a platform for fee income to drive incremental revenue growth. Net fee income grew 7% year-on-year to S$2.4 billion in FY2024, with wealth management fees recording double-digit growth of 17% to S$698 million, driven by improved investor sentiment and enhancements to the bank's wealth management platforms. Card fees grew strongly on an enlarged regional franchise, and loan-related fees increased to S$684 million as lending and capital market activities picked up.

Fee income accounted for 17% of total income in FY2024, up one percentage point from FY2023, signaling a gradual shift toward a more diversified income mix. In FY2025, this trend continued as net fee income reached a record S$2.6 billion, up 7% year-on-year, even as net interest income declined 3% to S$9.36 billion. The divergence underscores the bank's progress in building non-interest income streams that can partially offset margin compression.

Gross fee and commission income rose 11% to S$3.16 billion in FY2024, with credit card fees up 18% to S$1.11 billion and wealth management fees up 17%, while loan-related fees gained 6% to S$684 million. Fund management fees rose 4% to S$212 million, and service charges increased 2% to S$146 million.

Amount (S$ million) (S$ million)Source: Orionmano Industries

Wealth Management and Regional Expansion

Wealth management has emerged as a core growth engine. Wealth management fees grew 17% year-on-year in FY2024, supported by improved investor sentiment and platform enhancements. Assets under management for high-net-worth clients rose 6% in FY2025 to S$201 billion, reflecting sustained client acquisition and asset appreciation.

The bank has set an explicit strategic target: UOB aims to double income from its wealth business by 2030. Deputy Chairman and CEO Wee Ee Cheong stated at the bank's earnings briefing that the lender sees "significant opportunities" in wealth management, "underpinned by a large and increasingly affluent customer base that is underpenetrated." He described this as providing "a long runway for sustainable, organic growth."

The regional expansion strategy extends beyond wealth management. Transaction banking contributed nearly half of wholesale banking income in FY2025, according to the bank's full-year results. UOB's regional footprint across ASEAN—with particular strength in Malaysia, Thailand, Indonesia, and Vietnam—positions it as a connectivity bank for cross-border trade and investment flows within the region.

Outlook in a Lower-Rate Environment

The interest rate environment has shifted significantly from the elevated levels of 2023. UOB's net interest margin contracted to 1.89% in FY2025 from 2.03% in FY2024, reflecting the impact of rate cuts by the US Federal Reserve and other central banks. Net interest income declined 3% to S$9.36 billion in FY2025 as a result.

In the first quarter of FY2026, net profit fell 3.6% year-on-year to S$1.44 billion, as total income declined 6.4% to S$3.42 billion. Net interest income dropped 3.5% to S$2.32 billion due to lower benchmark rates, while net fee income declined 8.2% to S$637 million from the prior year's record high, driven by moderating investment banking and loan-related activity amid cautious market sentiment. Other non-interest income decreased 17% to S$462 million.

CEO Wee Ee Cheong acknowledged the headwinds, noting in the Q1 FY2026 results that the bank delivered "a steady performance," reflecting "the underlying strength of our core business and diversified income streams." He emphasised the bank's regional footprint and "deep ASEAN connectivity" as buffers against a more uncertain operating environment, stating the bank is prepared to support customers "amid a more uncertain operating environment."

The bank's ability to sustain income growth will depend on its success in scaling fee-based revenues—particularly wealth management—to offset net interest margin compression. While near-term headwinds from lower rates and cautious market sentiment may temper growth in 2026, UOB's diversified income base and regional wealth management ambitions position it to navigate the cycle.