The bank has acquired consumer banking businesses from Citigroup, adding to its footprint. It reported a robust set of financial numbers.

United Overseas Bank has reported a record high “core” net profit for 2022 of S$4.8 billion ($3.6 billion), rising 18 per cent on a year ago.

Including one-off expenses relating to the acquisition of Citigroup’s Malaysia and Thailand consumer businesses, net profit was also a record high at S$4.6 billion, Singapore-based UOB said in a statement late last week.

The bank’s board said it recommended the payment of a final dividend of 75 cents per ordinary share. Together with the interim dividend of 60 cents per ordinary share, the total dividend for FY22 will be S$1.35 per ordinary share, representing a pay-out ratio of about 49 per cent.

The acquisition of Citigroup’s consumer businesses in Malaysia and Thailand was completed in November 2022; completion for Indonesia and Vietnam is slated for this year. 

Net interest income jumped 31 per cent to S$8.3 billion on the back of 3 per cent loan growth and a 30 basis point net interest margin improvement. Net fee income remained soft as weak market sentiment weighed on wealth management and loan-related activities. However, a strong double-digit growth in credit card fees partially offset the decline. Asset quality remained benign with non-performing loan (NPL) ratio at 1.6 per cent.

Despite market volatility, net new money inflows grew assets under management from affluent customers to S$154 billion.