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SINGAPORE'S second-largest lender, United Overseas Bank , said quarterly profit fell a bigger-than-expected 5.1 per cent, as volatile financial markets hurt non-interest income and as it wrote down bad debts.
UOB said on Friday July-September net profit fell to $475 million from $501 million a year ago. Analysts had predicted net profit of $500 million, or a drop of 0.2 per cent, from a year earlier, according to the average of four forecasts compiled by Reuters.
Loan growth in Singapore has so far defied expectations because of demand for construction and infrastructure projects, but analysts have warned that the double-digit growth is likely to slow in the months ahead as the economy cools.
UOB, controlled by chairman Wee Cho Yaw and his family, is considered the leader in Singapore's loan market for small- and medium-sized businesses, and has benefited from demand for property and construction.
UOB shares fell 9.8 per cent in July-September, compared to an 11 per cent drop in shares of sector leader DBS Group and a 12.2 per cent decline in third-ranked Overseas Chinese Banking Corporation (OCBC).
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