United Overseas Bank delivered steady Q1 net profit but refused to issue full-year guidance amid unclear U.S. trade dynamics, underlining the challenge of projecting credit and loan growth in a volatile environment.
Q1 Results Overview
UOB posted net profit of S$1.49 billion, flat year-on-year, with steady fee income and solid loan growth. Yet performance fell slightly short of consensus estimates, reflecting cautious momentum.
Guidance Suspension
Due to unpredictable tariff developments and global trade shifts, UOB opted not to provide 2025 forecasts. Leadership cited the disrupted global order making assumptions tenuous.
Growth Prospects
Despite uncertainty, the bank expects high single-digit loan growth in 2025, driven by SME and infrastructure financing. It also projects continued fee growth and credit costs around 25–30 basis points.
Competitive Positioning
UOB’s decision aligns with peers who likewise emphasize caution. As a major ASEAN lender, it emphasizes cross-border flows and hedging capabilities to navigate volatility.
Editor’s Note
In uncertain times, silence speaks volumes. UOB’s measured pause on guidance reveals disciplined risk management — a signal to investors that cautious optimism prevails.
Tags
UOB Q1 performance, no guidance 2025, tariff uncertainty, loan growth Singapore