UOB, in contrast, reported earnings of $443 million, down 72% y-o-y due to “pre-emptive” additional general provision of $615 million. The bank will maintain its share buyback, and CEO Wee Ee Cheong stresses that the provisions will have no bearing on its final dividend for FY2025.
Despite lower rates, which dampened margins, the 3QFY2025 report cards for DBS Group Holdings and Oversea-Chinese Banking Corporation (OCBC) were better than expected, driven by heftier wealth management fees. Meanwhile, United Overseas Bank (UOB) was weighed down by hefty general provisions. The bank describes these provisions as ‘pre-emptive’.
For the three months to Sept 30, DBS’s earnings dipped by 2% y-o-y to $2.95 billion, although total income reached a new high due to its wealth management business and deposit growth. DBS is pleasing shareholders with a total 3QFY2025 dividend of 75 cents and is guiding for a higher payout in the new year. OCBC’s earnings held steady at $1.98 billion, supported by broad-based fee, trading and insurance income growth and lower allowances.
