UOB beats expectations with Q4 profit up 8.6% to S$1.52 billion; announces S$3 billion capital distribution package

UOB on Wednesday (Feb 19) posted a net profit of S$1.52 billion for the fourth quarter ended December, up 8.6 per cent from S$1.4 billion in the previous corresponding period.

This included S$17 million in one-off expenses from the lender’s Citigroup integration costs after taxes, which was 81.9 per cent lower than the S$94 million recorded in the same period the previous year.

The earnings beat the S$1.48 billion consensus forecast in a Bloomberg survey of six analysts.

The lender has declared a higher final dividend of S$0.92 per share for the half-year period, up from S$0.85 the year before.

This brings the full-year dividend to S$1.80 per share, representing a payout ratio of about 50 per cent. The lender is also proposing a special dividend of S$0.50 per ordinary share.

For the full year, net profit was up 5.8 per cent to S$6 billion. Excluding the one-off Citigroup integration costs, core net profit would be S$6.23 billion, up 2.9 per cent on the year.

Net interest income for the quarter was up 2 per cent on the year to S$2.45 billion. Net fee income was stable at S$567 million. UOB’s non-performing loan ratio remained at 1.5 per cent as at Dec 31, 2024.

As part of the bank’s capital distribution strategy, the board has announced a S$3 billion package to distribute surplus capital over the next three years. The package comprises special dividends and share buybacks. 

 In addition, UOB has introduced a new share buyback programme of S$2 billion.

Shares of UOB ended Tuesday 0.1 per cent or S$0.04 higher at S$38.65.