UOB’s 2021 net profit up 12.2% to RM1.14b

KUALA LUMPUR: UOB Malaysia recorded a 12.2% increase in net profit to RM1.14 billion last year on higher operating income and lower total allowance for expected credit losses.

UOB’s total operating income grew 4.3% to RM3.35 billion, on the back of stronger net interest income and higher net income from the Islamic banking business. Total allowances for expected credit losses was 17.7% lower compared with the previous year, largely due to lower expected credit losses on loans, advances, financing and other financial assets for non-impaired assets.

While managing its discretionary expenses, UOBMalaysia continued to invest in technology infrastructure in 2021 to support its business growth, which resulted in a 5.7% increase in total operating expenses to RM1.36 billion.

Gross loans, advances and financing base rose 2.9% to RM90 billion and non-bank deposits increased 3.7% to RM97.1 billion in 2021. Amid a challenging environment, wholesale banking loans and financing grew steadily, riding on the bank’s Islamic banking capabilities as well as its regional networks.

The bank was the second largest loan bookrunner in Malaysia in 2021. In addition, the total foreign direct investment transactions facilitated by the bank increased by close to 20%, compared with the year before. These flows included new investments from Greater China, Asean, South Korea and the US.

UOB Malaysia CEO Ng Wei Wei said despite last year’s volatile operating environment, the bank was able to grow its operating income and net profit. Through prudent risk management and business approach, UOB kept its balance sheet robust while continuing to capture opportunities and grow market share.

“Going forward, we remain focused on enhancing our technology infrastructure to drive innovation and performance. We will also continue to support our customers to capitalise on Asean’s structural growth trends, as well as to transition to sustainability through our suites of financing solutions,” Ng said in a statement today.