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UOB year-on-year Q2 net profit up 3.2%

Home loans formed the bulk of UOB's non-performing loans in Singapore - for the second quarter, its group non-performing loans increased by 7.3 per cent on-year to S$2.31 billion.

SINGAPORE: UOB, the smallest of the three local banks in Singapore, reports that its net profit has grown by 3.2 per cent year-on-year, to S$808 million.

For the quarter, net interest income is up 10.7 per cent to S$1.12 billion. Non-interest income grew 21.1 per cent to S$760 million. For the first half, UOB made S$1.6 billion - up 6.1 per cent from a year ago. UOB's shares closed 0.5 per cent up, at S$24.16 apiece.

Home loans formed the bulk of UOB's non-performing loans in Singapore. According to the lender, for the second quarter, its group non-performing loans increased by 7.3 per cent on-year to S$2.31 billion.

At its second-quarter results briefing on Thursday (July 31), UOB attributed the bad loans to a group of home-loan borrowers who are likely to be property investors.

"As far as the general portfolio is concerned, I think it’s very, very well-secured,” said Mr Wee Ee Cheong, Deputy Chairman & CEO of UOB Group. “There is no systemic risk as far as the overall housing loan portfolio (is concerned). There a few isolated cases - we are not in a position to disclose - but we are still investigating."

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