Photo Credit: Uob-uobplaza by mailer_diablo under Creative Commons Attribution-Share Alike 3.0 Unported It’s been a hopeful three months since the local banks last reported their earnings. Vaccination rates have improved dramatically in many countries, Singapore included, as the fight against COVID-19 drags on. United Overseas Bank Ltd (SGX: U11), or UOB, has performed admirably in the face of tough economic conditions. The lender recently released its fiscal 2021 second quarter (2Q2021) and first-half (1H2021) earnings. Suffice to say its numbers painted a picture of strength and resilience as growth continued to power on. Here are five aspects of the bank’s earnings that investors will want to know about.

1. Lower allowances, higher profits

For the quarter, net interest income rose by 8% year on year to S$1.6 billion while fee income jumped 34% year on year to S$595 million. Total income for the bank increased by 7% year on year, but was down slightly by 3% compared to its first quarter. Allowances were more than halved, going from S$396 million in the prior year to S$182 million in 2Q2021....