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United Overseas Bank (U11.SG) down 0.9% at $18.56, vs S$18.58 level midday before 3Q results, which predictably show bank laboring to generate mortgage-book earnings growth amid low interest rate environment.
3Q net profit of $688 million, +37.5% on year, +14.3% on quarter; Dow Jones poll of analysts had tipped $598.5 million, but profit rise largely attributable to higher trading, investment income, lower impairment charges (down 42.9% to $134 million) as asset quality improves, with non-performing loan ratio steady at 1.9% in 3Q vs 2Q, down from 3Q09’s 2.4%.
3Q net profit of $688 million, +37.5% on year, +14.3% on quarter; Dow Jones poll of analysts had tipped $598.5 million, but profit rise largely attributable to higher trading, investment income, lower impairment charges (down 42.9% to $134 million) as asset quality improves, with non-performing loan ratio steady at 1.9% in 3Q vs 2Q, down from 3Q09’s 2.4%.
Bank’s underlying performance remains lackluster; net interest income at $883 million, down 4.5% on year, flat on quarter, continuing declining trend seen as low interest rates eat away at net interest margin, which at 2.07%, down 0.07 percentage point vs 2Q, off 0.32 percentage point vs 3Q09. $18.36 last week’s low likely to hold rest of day.
