UOB reports 40% lower 3Q net earnings of $668 mil, shores up $339 mil of credit allowance for the quarter

UOB Group reported net profit after tax (NPAT) or net earnings of $668 million for 3QFY2020 ended September, some 40% lower than the net earnings of $1.12 billion the year before, due to the pre-emptive build-up of credit allowance of $339 million in the quarter.

Net earnings for the 9MFY2020 stood at $2.23 billion, 33% lower than the $3.34 billion reported a year ago. UOB says the lower figures were a result of declining margins, slower customer activities and pre-emptive credit provisioning on the uncertainties of the Covid-19 pandemic.