United Overseas Bank Limited (SGX: U11), or UOB as its commonly referred to as, is one of the leading banks in Asia.
Operating through its head office in Singapore, and its banking subsidiaries in China, Indonesia, Malaysia, Thailand, and Vietnam, UOB has a network of around 500 offices in 19 countries and territories in Asia Pacific, Europe, and North America. However, its focus is in ASEAN, where it is focused on building the future of the region.
Following DBS which have released its results for the 4th quarter and for the full year ended 31 December 2024 (you can read my review about it here), UOB is the next Singapore bank to do so this morning (19 February).
In this post, you will find my review of its latest financial figures and ratios, as well as its dividend payout to shareholders:
Financial Figures (4Q FY2023 vs. 4Q FY2024, and FY2023 vs. FY2024)
In this section, you will find my review of UOB’s results reported for the 4th quarter, as well as for the full year ended 31 December 2024 (i.e., FY2024), compared against that reported in the corresponding time periods last year:
4Q FY2023 vs. 4Q FY2024:
| 4Q FY2023 | 4Q FY2024 | % Variance | |
| – Net Interest Income (S$’mil) | $2,404m | $2,451m | +2.0% |
| – Net Fee & Commission Income (S$’mil) | $569m | $567m | -0.4% |
| – Other Non-Interest Income (S$’mil) | $438m | $443m | +1.1% |
| Total Income (S$’mil) | $3,410m | $3,461m | +1.5% |
| Total Expenses (S$’mil) | $1,473m | $1,558m | +5.8% |
| Net Profit (S$’mil) | $1,403m | $1,523m | +8.6% |
My Observations: UOB’s financial performance for the 4th quarter was a stable one.
Net interest income inched up by 2.0% to S$2,451 million, supported by loan growth of 5%.
The slight decline in its net fee & commission income can be attributed to a dip in its loan/trade-related fees (by 3.6% from S$218 million in 4Q FY2023 to S$210 million in 4Q FY2024), partially offset by improvements in credit card and wealth management fees.
Total expenses increased by 5.8% year on year from investments in franchise growth.
FY2023 vs. FY2024:
| FY2023 | FY2024 | % Variance | |
| – Net Interest Income (S$’mil) | $9,679m | $9,674m | -0.1% |
| – Net Fee & Commission Income (S$’mil) | $2,235m | $$2,395m | +7.2% |
| – Other Non-Interest Income (S$’mil) | $2,018m | $2,225m | +10.3% |
| Total Income (S$’mil) | $13,932m | $14,294m | +2.6% |
| Total Expenses (S$’mil) | $5,778m | $6,074m | +5.1% |
| Net Profit (S$’mil) | $5,711m | $6,045m | +5.8% |
My Observations: For the full year, UOB’s net profit of S$6,045 million was a new record.
Net interest income dipped by 0.1% year on year to S$9,674 million as a healthy loan growth of 5% offset a 0.6 percentage point (pp) decline in its net interest margin (from 2.09% in FY2023 to 2.03% in FY2024).
Net fee and commission income grew by 7.2% year on year to S$2,395 million, led by a double digit growth in wealth management fees from improved investor sentiments, stronger card fees on an enlarged regional franchise, along with higher loan fees as lending and capital market activities picked up.
The 10.3% year-on-year jump in UOB’s other non-interest income to S$2,225 million was driven by a robust customer-related treasury income from increased retail bond sales and strong hedging demands, together with good performance from trading and liquidity management activities.
Finally, the bank’s total expenses rose by 5.1% year on year to S$6,074 million as it continued to invest in building regional capabilities.
Key Financial Ratios (3Q FY2024 vs. 4Q FY2024)
One of the things I like about UOB is that, over the many quarters, apart from having a steady financial performance, it also boasts a strong set of financial ratios – particularly the 3 that I always look at whenever I review a bank’s results: (i) net interest margin, (ii) return on equity, as well as (iii) non-performing loans ratio.
In the table below, you will find a comparison of the same 3 financial ratios reported by UOB for the current period under review (i.e., 4Q FY2024 ended 31 December 2024) against that reported in the previous quarter 3 months ago (i.e., 3Q FY2024 ended 30 September 2024) to find out if they have continued to remain resilient:
| 3Q FY2024 | 4Q FY2024 | Difference (in Percentage Points – pp) | |
| Net Interest Margin (%) | 2.05% | 2.00% | -0.5pp |
| Return on Equity (%) | 14.3% | 13.1%** | -1.2pp |
| Non-Performing Loans Ratio (%) | 1.5% | 1.5% | – |
My Observations: Net interest margin moderated to 2.00% on lower benchmark rates.
Non-performing loans ratio remained stable at 1.5% (which as been the same since 4Q FY2023).
Dividend Payout to Shareholders
The management of UOB declares a dividend to the shareholders on a half-yearly basis.
In the 2 tables below, you will find UOB’s dividend payout declared for the 2nd half of FY2024, as well as its total dividends for FY2024, compared against that declared in the respective periods last year:
2H FY2023 vs. 2H FY2024:
| 2H FY2023 | 2H FY2024 | % Variance | |
| Dividend Per Share (S$’cents) | 85.0 cents | 117.0 cents | +37.6% |
The payout amount of 117.0 cents/share comprise of a final dividend payout of 92.0 cents, and half of the special dividend payout of 50.0 cents/share (which is part of the bank’s capital distribution strategy to reward its shareholders, as well as to commemorate its 90th anniversary) – the other half of the special dividend (of 25.0 cents/share) will go ex-dividend on 18 August and paid out on 28 August.
FY2023 vs. FY2024:
| FY2023 | FY2024 | % Variance | |
| Dividend Per Share (S$’cents) | 170.0 cents | 205.0 cents | +20.6% |
If you are a shareholder of UOB, do take note of the following dates on the payout of its dividends declared for the 2nd half of FY2024:
Ex-Date: 28 April 2025
Record Date: 29 April 2025
Payout Date: 13 May 2025
CEO Mr Wee Ee Cheong’s Comments & Outlook (from the Bank’s Press Release)
“The Group achieved a record net profit in 2024, driven by strong fee income as well as robust trading and investment income. Our long-term investments in regional platforms and capabilities are paying off, and we expect continued revenue growth this year.
Despite global uncertainties, we are confident that the ASEAN region will remain resilient, supported by higher domestic retail spending and stronger influx of foreign direct investment. Our strengthened market position in our key ASEAN markets, enlarged customer base and enhanced platforms will position us well to seize regional opportunities amid a reconfiguration of global trade and supply chains.
In 2024, we completed the integration of our Citigroup portfolio in Thailand, following successful integrations in Malaysia and Indonesia in 2023. Integration for Vietnam is on track to be completed by this year. We will continue to harness cross-sell synergies, manage costs, and enhance our products and solutions to better serve our expanded customer base.
This year marks UOB’s 90th anniversary. We have come so far thanks to the unwavering support of our stakeholders, partners, and customers. We will continue our disciplined approach to pursuing long-term growth with stability, ensuring we bring greater value to everyone we serve.”
Closing Thoughts
On the whole, it was a robust performance by UOB, with its net profit of slightly more than S$6 billion for the full year a new record for the bank.
As expected, the management also bumped up its final dividend payout to 92.0 cents/share – a 8.2% year-on-year improvement from its payout of 85.0 cents/share last year. Together with its interim dividend of 88.0 cents/share, the bank’s total dividend payout for FY2024 was 180.0 cents/share, and this represented a payout ratio of 50.0% (in-line with the management’s guidance).
Additionally, as part of the bank’s capital distribution strategy to distribute surplus capital, it has declared a special dividend of 50.0 cents/share to be paid out in 2 tranches – 25.0 cents/share this time round (hence the total dividend payout you’ll receive on 13 May will be 117.0 cents/share), and another 25.0 cents/share in August 2025 (supposedly together with the bank’s interim dividend payout for 1H FY2025).
Looking forward, with the US Federal Reserve very likely to maintain benchmark lending rates at current levels as inflation still remains stubbornly high, net interest margin should continue to hold and be a tailwind for the bank.
With that, I have come to the end of my review of UOB’s latest results for the 4th quarter, as well as for the full year ended 31 December 2024. Do note that all the opinions above are purely mine, which I am sharing for educational purposes only. They do not constitute any buy or sell calls for the bank’s shares. You should always do your own due diligence before you make any investment decisions.
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Disclaimer: At the time of writing, I am a shareholder of United Overseas Bank Limited.
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