Tuesday, February 16, 2016

UOB Group posts 1.2% dip in earnings to $3.21 billion for FY2015

UOB Group has posted earnings of $3.21 billion for FY2015, a 1.2% decline from a year ago.

Total income rose 7.9% to $8.05 billion, on the back of strong client franchise income and higher gains on sale of investment securities.

Net interest income grew 8.1% to $4.93 billion, on higher net interest margins and an expanded loan base. Net interest margin increased six basis points to 1.77%, following the rising interbank and swap offer rates in Singapore.

Non-interest income rose 7.7% to $3.12 billion in 2015, as fee income grew 7.7% to $1.88 billion from the growth of credit card, fund management and wealth management activities.

Share of associates’ profits decreased 40.0% to $90 million, on the back of a non-recurring gain from the disposal of associates in FY2014, which was not seen in FY2015

UOB says it expects financial markets to continue to be volatile in 2016, but believes that the risks are manageable. The group will also continue to stay disciplined in pursuing sustainable growth through investments in its capabilities and selectively growing its franchise.

The group declared a final dividend of 35 cents per share for the current financial period.

UOB’s shares closed 1.65% higher at $17.85 on Feb 15.

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