SINGAPORE (May 6): UOB Group reported earnings of $855 million for 1QFY2020 ended March, some 19% lower than earnings of $1.05 billion a year ago.

The group says the decline was primarily attributable to declining interest rates and higher credit costs.

Notably, UOB has set aside some $546 million to strengthen allowance coverage amid the global pandemic and weak macro conditions. The group booked an impairment charge of $286 million, more than double that of $93 million in the previous year. Additional regulatory loss allowance reserve for the quarter, too, increased five-fold to $260 million. 

The group's total income remained flat y-o-y at $2.4 billion for the quarter under review, despite lower interest rates, and slower business momentum towards the end of the quarter due to the Covid-19 pandemic.

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