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UOB's Q4 net profit down 6.2%

United Overseas Bank (UOB) reported a 6.2 per cent fall in quarterly net profit, while net interest margin, a key gauge of profitability, weakened.

SINGAPORE: United Overseas Bank (UOB) has reported a 6.2 per cent fall in quarterly net profit, while net interest margin, a key gauge of profitability, weakened.

The results came after DBS Group posted its lowest quarterly profit in two years as provisions for soured loans to the country's oil services industry surged, and joined OCBC in forecasting more pain for that sector.

Net profit for UOB, the smallest of Singapore's three listed banks, came in at S$739 million in the three months ended December, versus S$788 million a year earlier, in line with an average forecast of S$730 million from six analysts polled by Reuters.

"Against the subdued growth environment of 2016, we delivered a steady income stream, supported by our diverse fee and lending businesses," Wee Ee Cheong, UOB's CEO, said in a statement.

The bank's full-year total income was stable at S$8.06 billion.