United Overseas Bank (UOB) reported a 10% year-over-year increase in its second-quarter net profit to S$1.48 billion, surpassing analysts' forecasts. Record-high wealth management fees largely drove this growth. These fees offset a 2% decline in net interest income. A lower interest rate environment caused the decline.
Net fee income grew 5% to S$665 million. Strong performance in wealth and fund management buoyed this growth. The bank's net interest margin narrowed to 1.74%. UOB revised its full-year guidance for fee income growth to a low single-digit percentage. A softer outlook for investment banking prompted this revision. The board declared an interim dividend of 88 cents per share.