Despite a dip in 2025 net profits, the United Overseas Bank (UOB) of Singapore plans to award approximately 6,000 junior staff members with a half-month base salary payout. This one-time payment aims to recognize their hard work and contributions amidst trying external circumstances.
UOB intends to distribute these payouts in the second quarter of this year. The total sum of the payouts will amount to roughly S$4 million (US$3.16 million), as disclosed in the bank’s recently released earnings report.
In the report, UOB also reaffirmed its dedication to uphold a competitive and equitable wage structure for all its employees.
This generous gesture comes in spite of UOB’s net profit experiencing a 7% year-on-year decline in the fourth quarter, closing at S$1.41 billion. This decrease resulted from margin pressures counterbalancing loan growth.
For the entire year, UOB’s net profit was recorded at S$4.7 billion, showing a decrease from S$6 billion in 2024. UOB identified the primary cause for this decline as the precautionary general allowances it had allocated in the third quarter, intended to fortify provision coverage in response to increasing macroeconomic uncertainties.
A critical profitability indicator for the bank, its net interest margin, decreased to 1.89% in 2025, down from 2.03% in the previous year. Simultaneously, net interest income saw a 3% decline, amounting to S$9.36 billion.
UOB is not the only Singaporean bank showing appreciation for its employees in such a manner. Another prominent bank in the country, DBS, also declared a S$1,000 bonus for its numerous junior employees upon the disclosure of its 2025 earnings earlier this month.
What is the total amount UOB plans to distribute to its junior staff as a reward?
UOB plans to distribute around S$4 million (US$3.16 million) among approximately 6,000 junior staff members.
What caused UOB’s net profit to decrease in 2025?
The decrease in UOB’s net profit for 2025 is largely attributed to the bank setting aside precautionary general allowances in the third quarter, aimed at bolstering provision coverage due to escalating macroeconomic uncertainties.
Did other banks in Singapore also provide bonuses for their junior employees?
Yes, DBS, another prominent bank in Singapore, also announced a S$1,000 bonus for its junior employees when it released its 2025 earnings.
