The bank’s quarterly earnings surged on the back of strong fees, trading, and investment income as business momentum improved.
UOB’s earnings grew to S$1 billion ($750 million) in the first quarter of 2021 – up 46 percent from the previous quarter’s S$688 million and up 18 percent from the same period last year, according to financial results posted on Thursday.
Income grew 11 percent to reach pre-Covid levels at S$2.5 billion, while fee income reached a new high to reach S$638 million (+22 percent), led by wealth management fees from investments and bancassurance. The bank also saw stronger activity in loans and investment banking, as well as treasury income. Its wealth management assets grew 10 percent to S$136 billion, of which 60 percent was from customers abroad.
The bank highlighted growth across its key markets in Singapore, North Asia, and its Asean franchise. It expressed optimism as sentiment and business activities pick up and trade flows resume between Asean and Greater China.
Across our key markets, we are seeing robust credit demand from our large corporate and institutional clients, Wee Ee Cheong, UOB deputy chairman, and CEO, said.
Sustainability was a key theme for UOB, as total sustainable financing reached $12 billion during the quarter. During this period, the bank also issued Singapore’s first sustainability bond and global first dual-tranche sustainability bond.
The bank’s AUM in ESG-focused investments also reached S$2.2 billion at the end of the quarter.
DBS, which announced its first-quarter results last week, also experienced a strong quarter, doubling its income from the quarter before to reach S$2.01 billion and posting record wealth management fees.
OCBC is due to release its quarterly results tomorrow, but its insurance arm Great Eastern has already reported a twelvefold increase in profits this quarter.