United Overseas Bank Ltd. () published better-than-expected profits in its latest incomes report recently. Oil and gas services resulted in the company declaring 799 million Singapore dollars ($585.5 million) in nonperforming properties through September.Higher interest earnings
and charges caused the business’s profits increasing 12% to SG$ 883 million. Analysts pegged the company’s earnings at SG$ 841 million. Earnings rose 15%to SG$ 1.41 billion. The lending institution had the ability to raise loan rates due to interbank rates.Active balance sheet management was a key element in the company increasing its quarterly net interest margin by 10 basis points.
Net interest margins increased to 1.79%. Increasing rate of interest also added to the business’s growth.The company’s nonperforming possessions were noted as being primarily from one “big account.”The account, in the oil and gas sector, was not named directly by Chief Financial Officer Lee Wai Fai. Fai said the company’s direct exposure to the oil and gas sector stays under tension and noted it has “appropriate levels of allowance “to balance out the market’s issues.Credit card and wealth management charges helped boost the bank’s bottom line.Subdued growth over the past two years led to a healing in the banking sector. Regional and local economies are expected to fuel around 3%development this
year. The development rate is the greatest in 3 years. “The property quality of our overall
portfolio was steady, apart from a couple of oil and gas-related issues, and our reserves buffer and capitalization remained high,” Deputy Chairman and CEO Wee Ee Cheong said in a statement. Nonperforming loan ratios are 1.6 %, up from 1.5 %in the previous quarter.Non-interest earnings increased 2%from the previous year, striking SG$ 830 million for the quarter .
Commission and charge earnings rose to SG$ 551 million. Other non-interest earnings fell 12
%to SG$ 279 million. The falling earnings consists of earnings stemmed from trading, too.The bank’s net profits over the very first 3 quarters of the year were S$ 2.54 billion, up 8%. The business’s earnings release likewise suggested the bank is positive about its long-lasting potential customers in Asia.
The bank is dedicated to supporting its customers through continued financial investments. United Overseas ‘shares
are up over 20% in 2017, however still remain below the market standard for the 3 major banks in Singapore.The business’s stock is up 23%in the tracking 12-month period.Disclosure: The author does not have any stake in the noted equities About the author: Jacob Maslow Jacob Maslow is a writer and marketing professional who started his profession as a payroll manager.
The very same affinity for numbers that initially led him to an early career
in accounting now can be found in useful when it comes to understanding and dealing with marketing analytics.A native of New york city, Maslow
is now based in the Middle East, where he lives with his better half and 5 kids and supplies premium services to clients in a variety of industries, consisting of the legal, medical and monetary sectors.In. addition to his marketing and consulting work, Maslow has founded a variety of news sites, consisting of Legal Scoops. He is a frequent contributor to a range of publications including business.com and business2community.com.