United Overseas Bank (Malaysia) Bhd (UOB Malaysia) has reported a net profit after tax of RM1.22 billion for the financial year ended 2019, relatively flat from the previous year. The solid, albeit slightly lower, performance was driven by higher net interest and non-interest income, but partially offset by an increase in operating expenses and allowances for expected credit losses.
The Bank’s total operating income increased 3.2% to RM3.10 billion in 2019, contributed by higher interest income from loans and debt instruments at fair value through other comprehensive incomes. The growth in net interest income was partially offset by higher interest expense from net placements of financial institutions. Non-interest income growth was supported by higher trading and investment income. Net income from the Bank’s Islamic Banking business also increased by 2.9% to RM42.0 million during the year.
UOB Malaysia’s cost-to-income ratio increased slightly to 40.9% in 2019 (2018: 39%), while total operating expenses increased 8.6% to RM1.27 billion as the Bank continued to invest in its talent and technology infrastructure to support business growth.
Wong Kim Choong, Chief Executive Officer, UOB Malaysia, said the Bank’s performance in 2019 reflected the slower global economic growth amid weaker global manufacturing and trade activities.
#UnitedforYou COVID-19 Relief Programme
With the increasingly challenging operating environment due to the effects of the COVID-19 pandemic, UOB Malaysia remains focused on supporting its customers, colleagues and the community as part of UOB Group’s global #UnitedForYou COVID-19 Relief Programme.
“UOB Malaysia has a responsibility to help where it can, at a time when everyone is worried about their livelihoods, health and safety. The escalation of the COVID-19 contagion into a pandemic, in addition to ongoing trade disputes and geopolitical tensions, will significantly weaken global growth in 2020. COVID-19 lockdowns in many countries have disrupted supply and demand chains worldwide, resulting in material impact on the operations of many industries and businesses,” said Wong.
To support communities affected by the pandemic, UOB Malaysia has launched the UOB Heartbeat COVID-19 Relief Fund to help alleviate the financial burden and distress many are facing during this difficult period through various initiatives.
“We remain steadfast in support of our customers as their long-term financial partner, committed to serving them better through product innovation, technology and strategic partnerships to make banking safer, smarter and more convenient,” added Wong.
“Having been in Malaysia for close to 70 years and in the region for more than 80 years, we have navigated through many challenges. We are positive of ASEAN’s long-term potential and are confident that we are well-positioned to weather the current storm and to emerge stronger.”
UOB Malaysia’s Annual Report 2019 is available at www.uob.com.my.