UOB MALAYSIA'S 2023 NET PROFIT UP 44.4 PCT TO RM1.9 BLN

KUALA LUMPUR, May 10 (Bernama) -- United Overseas Bank (Malaysia) Bhd (UOB Malaysia) posted a net profit of RM1.9 billion in financial year 2023, up 44.4 per cent from RM1.3 billion in the previous year, driven by higher operating income.

In a statement, the bank said the operating income grew by 19.3 per cent to RM4.6 billion (2022: RM3.9 billion) and crossed the RM4.0 billion mark for the first time, backed by net interest income growth of 7.4 per cent to RM2.9 billion, and higher income contribution from Islamic Banking business.

“Other operating income grew by 50.0 per cent to RM1.6 billion, mainly driven by higher net foreign exchange gains and fee, and commission income,” UOB Malaysia said.

By business pillars, the bank’s operating income for Wholesale Banking surged by 18.5 per cent to RM2.1 billion, mainly backed by strong growth in Transaction Banking and Global Markets’ business flows, as it continues to leverage its strong Asean footprint and China connectivity to help businesses expand.

In line with UOB Malaysia's commitment to help local businesses, including small and medium enterprises (SMEs), transition to sustainable practices, the bank has provided RM6.2 billion in green financing loans to date.

For Retail Banking, operating income increased by 46.1 per cent to RM1.9 billion, primarily led by a significant increase in net interest income and fee and commission income, in part due to the consolidation of Citigroup’s consumer banking business.

Meanwhile, UOB Malaysia’s operating expenses increased by 3.6 per cent mainly due to a one-off cost from the acquisition of Citigroup’s consumer banking business.

The bank’s total allowance for expected credit losses also increased by RM191.4 million to RM331.4 million, largely attributed to higher expected credit losses of non-impaired assets, commitments and contingencies due to prior year write-back, coupled with increased provisions for impaired assets.

In 2023, UOB Malaysia’s gross loans, advances and financing increased by 1.4 per cent to RM107.1 billion, with a strong 11.0 per cent growth in trade financing. Non-bank deposits grew by 4.6 per cent to RM116.0 billion.

The bank’s capital position continued to remain strong with Common Equity Tier 1 of 15.9 per cent and Capital Adequacy Ratio of 18.9 per cent, well above regulatory requirements providing a sufficient buffer to support future growth.

Chief executive officer Ng Wei Wei said that guided by its three-year strategic plan, UOB Malaysia will continue to leverage its extensive footprint and expertise to help businesses unlock new avenues for growth across the region through cross-border trade and investment.

She said as sustainability increasingly becomes a business imperative, the bank is committed to supporting local companies, especially SMEs, to transition to green practices and increase their competitiveness in the global value chain.

“The acquisition of Citigroup’s Consumer Banking business has further strengthened UOB Malaysia’s retail franchise and unlocked new opportunities for better product offerings and global partnerships. With the successful integration in July 2023, the bank will continue to extract value from the synergy of the two portfolios to drive growth,” she said.

-- BERNAMA