Higher provisions trim profits at UOB
(Singapore) – Higher provisioning has dragged first quarter profits at Singapore’s United Overseas Bank 11 percent lower to a S$280.8 million net result.
UOB, Singapore’s biggest bank by market capitalisation, said concerns about its loan book in the difficult economic environment had prompted a significant jump in provisioning, up from S$10.2 million for the first three months last year to S$90.1 million this year.
A lower collateral value for the bank’s property portfolio was also a factor in the result, as was lower income from other units.
The bank said that while its results showed some resilience, the impact of the SARS crisis was still creating uncertainty.
"While we cannot fully anticipate the effect that SARS might have on the group’s businesses and financial performance going forward, our capital and liquidity positions remain sound and we are well placed to face these unique challenges," the bank said.
A lower collateral value for the bank’s property portfolio was also a factor in the result, as was lower income from other units.
The bank said that while its results showed some resilience, the impact of the SARS crisis was still creating uncertainty.
"While we cannot fully anticipate the effect that SARS might have on the group’s businesses and financial performance going forward, our capital and liquidity positions remain sound and we are well placed to face these unique challenges," the bank said.
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