At lunchtime, the UOB Group released its financial results for the first quarter ended 31 March 2007 (“1Q07”), with a net profit after tax of S$518 million. This represents an increase of 18% over the same period last year.
Our growth continues to be broad-based with core operating lines showing good performance. Total income rose 19% year-on-year, boosted by higher net interest income and all-round better performance in fee-based activities.
Net interest margin improved to 2.18% with loan margin continuing its upward trend despite the competitive environment, a result of our regional diversification efforts. This is also evident looking at overseas pre-tax profit where we grew 23% organically. For more details, please visit our online bulletin, UOB Xchange, or the Group website.
During the quarter, we continued to grow our loans and profits in consumer, SME and corporate segments across the various countries, reflecting the strength of our franchise in the region. Let us continue to harness the shared resources and synergies across our regional network. The Group made further inroad in its regionalization efforts by taking a 10% stake in Vietnam’s Southern Bank and signing a letter of intent to start negotiating for a strategic investment in China’s Evergrowing Bank. The latest initiatives are in line with the Group’s directions to extend our regional footprint.
Operating expenses increased 19% as the Group continued to invest in its people, franchise and infrastructure. But we managed to maintain expense-to-income ratio at 39.5%. Let us continue to be mindful of our expenses.
Looking ahead, the opportunities offered by the region remain attractive. Our strong capital position as well as focus on building long-term capability will place us in good stead to grow our franchise towards becoming a premier regional bank. Your continued dedication and support will be key in achieving this mission.
