KUALA LUMPUR: United Overseas Bank (M) Bhd (UOB Malaysia) registered a net profit of RM1.22 bil for the financial year ended Dec 31, 2019 (FY19).
In a statement today, the bank attributed its performance to higher net interest and non-interest income, which was partially offset by an increase in operating expenses and allowances for expected credit losses.
Its total operating income increased 3.2% to RM3.1 bil in 2019, contributed by higher interest income from loans and debt instruments at fair value through other comprehensive incomes.
“The growth in net interest income was partially offset by higher interest expenses from net placements of financial institutions.
“Non-interest income growth was supported by higher trading and investment income,” it said, adding that the net income from the bank’s Islamic banking business also increased by 2.9% to RM42 mil during the year.
UOB Malaysia said its total allowances for expected credit losses increased 9.9% or RM20.6 mil, mainly due to higher expected losses on loans, advances, financing and other financial assets.
“However, this was partially offset by a write-back in commitments and contingencies,” it said.
UOB Malaysia’s cost-to-income ratio increased slightly to 40.9% in 2019 (2018: 39%), while total operating expenses increased 8.6% to RM1.27 bil as the bank continued to invest in its talent and technology infrastructure to support business growth.
“Gross loans, advances and financing rose 3.5% to RM86.2 bil and non-bank deposits increased by 0.5% to RM89.1 bil in the same period.
“The bank maintained its sound asset quality by keeping its net non-performing loans ratio low at 1.5% during the year,” said UOB Malaysia.
Chief executive officer Wong Kim Choong said the bank’s performance in 2019 reflected the slower global economic growth amid weaker global manufacturing and trade activities.
“Despite the moderation across advanced economies, subdued demand for goods and services and disruptions in the global supply chain, UOB Malaysia achieved solid performance for FY19.
“Backed by our strong balance sheet and effective resource management, we navigated the macro headwinds and stayed focused on helping our customers seize opportunities both at home and across Asean by tapping UOB Group’s regional expertise,” said Wong.
He said the bank’s performance in 2019 also underscored its robust corporate governance, strong risk management and sound business practices.
“With the increasingly challenging operating environment due to the effects of the Covid-19 pandemic, UOB Malaysia remains focused on supporting its customers, colleagues and the community as part of UOB Group’s global #UnitedForYou Covid-19 Relief Programme,” he said.
UOB Malaysia is a unit of Singapore-based United Overseas Bank Ltd and has had a presence in Malaysia since 1951. – May 20, 2020, Bernama
