Profit at Singapore's UOB bank soars 71.2 per cent in first quarter

May 7, 2010, 6:39 GMT

Singapore - Singapore's third largest bank, United Overseas Bank Ltd (UOB), on Friday said its net profit for the first quarter soared 71.2 per cent year-on-year, spurred by sharply reduced impairment charges and a rise in income.

Net profit for the period from January through March jumped to 700 million Singapore dollars (499.2 million US dollars), up from 409 million Singapore dollars a year ago, the company said.

The earnings included a one-time gain of 82 million Singapore dollars from the divestment of UOB Life Insurance, it added.

In the first quarter 2010, costs for bad debts decreased by 71.3 per cent year-on-year to reach 108 million Singapore dollars, UOB said.

Chief executive Wee Ee Cheong said UOB had been able 'to ride on Asia's economic recovery.'

'We believe that this part of the world is well-positioned for the post-crisis era,' he said, adding that the rebound would be volatile due to risks in the West.

UOB was the third of Singapore's leading banks to release first-quarter results this week.

Earlier on Friday, DBS Group Holdings Ltd said its net profit in the first quarter grew by 17 per cent year-on-year to 532 million Singapore dollars.

On Wednesday, Oversea-Chinese Banking Corp Ltd posted a 24-per-cent increase in net profit for the first quarter of 2010, to 676 million Singapore dollars.