The Asian bank's move to bolster its finances to handle any potential costs from macroeconomic turbulence hit the net profit result for the third quarter and nine-month reporting periods.

UOB, the Singapore-headquartered group providing services including private banking and wealth management, yesterday reported third-quarter net profit of S$443 million, falling 67 per cent, while the figure for first nine months of 2025 – S$3.271 billion ($2.5 billion)  – declined 28 per cent from its record high a year earlier.

The Asian lender said the cut in profit was caused by the bank having to take “proactive steps” to raise coverage to compensate for macroeconomic turbulence. 

“From this position of strength, we proactively set aside general allowances to significantly enhance provision coverage, backed by our strong capital base,” Wee Ee Cheong, deputy chairman and CEO, UOB, said. “This move reinforces resilience and flexibility to navigate headwinds and sustain long-term growth. By prioritising balance sheet strength, we stand ready to act, support customers and seize strategic growth opportunities. For shareholders, our share buyback and dividend commitments remain intact, and the pre-emptive allowance will not impact this year’s final dividend.”

Wealth management gave “record contributions” in fees to the result, UOB said. High net worth assets under management rose 8 per cent year-over-year to S$199 billion.

Total costs fell 2 per cent on a year earlier; total expenses held at around S$1.5 billion. The cost-income ratio nudged higher to 45.2 per cent.

The lender’s Common Equity Tier 1 ratio eased to 14.6 per cent after the interim dividend payment but held “comfortably” above regulatory requirements.

“Net fee income continued its upward trajectory, rising 6 per cent to a new high of S$1.9 billion, driven by record contributions from wealth management and loan-related fees amid improving market sentiment and renewed consumer optimism,” the bank said of figures for the nine months to end-September. “Customer-related treasury income also reached an all-time high, supported by strong hedging and investment demand. While trading and investment income normalised from last year’s exceptional levels, overall other noninterest income remained robust at S$1.6 billion.”