Singapore banks have benefited from rising interest rates and an economic expansion that has boosted credit demand. Wealth management fees contributed to the recently-released numbers.
Some highlights from UOB's results:
- Net interest income jumped 15 percent, driven by a higher net interest margin
- Fees and commissions grew 10 percent, due to growth in wealth and fund management and credit card operations.
Oil and gas and shipping issues are being aggressively tackled by UOB management. The bank used extra cash from general allowances to offset the impact of higher provisions in the sector that has exerted a negative pull on results of late.The bank's specific loan allowance rose 77% to S$781 million. DBS and OCBC have also beefed up provisioning to mitigate risks from the marine sector above all.UOB's board recommended a special dividend of 20 Singapore cents. Good signal.