United Overseas Bank Ltd (SGX: U11), or UOB, is the second of the three Singapore banks to report its first quarter 2024 (1Q 2024) earnings. To set the stage, Singapore’s largest bank, DBS Group (SGX: D05), reported a strong set of earnings for 1Q 2024. We can’t say the same for UOB which reported slightly lower net profit. That said, CEO Wee Ee Cheong still expects a positive outlook for UOB for 2024 with low single-digit loan growth along with double-digit fee growth. Here are five highlights from the bank’s latest earnings report.

Net profit dips slightly

UOB’s net interest income dipped by 2% year on year to S$2.4 billion because of a shorter quarter in 1Q 2024 along with a fall in net interest margin (NIM). Fee income, however, saw a 5% year-on-year increase to S$580 million while other non-interest income inched up 3% year on year to S$581 million. These two increases helped to offset the weaker net interest margin...