UOB Malaysia’s FY23 operating income hits record RM6.4bil, pretax profit RM1.9bil

KUALA LUMPUR: United Overseas Bank (M) Bhd (UOB Malaysia) reported a record total operating income of RM4.6bil and pretax profit of RM1.9bil in the financial year ended 2023.

The bank, in a statement, said its operating income rose 19.3% and hit the RM4bil mark for the first time, while pretax profit surged 44.4%.

UOB Malaysia said the increase in operating income was backed by net interest income growth of 7.4% to RM2.9bil, and higher income contribution from Islamic banking business, which rose 14.8% increase to RM169.6mil.

Other operating income also grew by 50% to RM1.6bil, mainly driven by higher net foreign exchange gains and fee, and commission income.

UOB Malaysia’s operating income for wholesale banking rose 18.5% to RM2.1bil while retail Banking operating income grew by 46.1% to RM1.9bil.

In 2023, UOB Malaysia’s gross loans, advances and financing increased by 1.4% per cent to RM107.1bil, with strong 11% growth in trade financing. Meanwhile, non-bank deposits grew by 4.6% to RM116bil.

The bank’s capital position continued to remain strong with common equity tier 1 of 15.9% and capital adequacy ratio of 18.9 per cent, well above regulatory requirement providing sufficient buffer to support future growth.

Chief executive officer Ng Wei Wei said UOB Malaysia will continue to leverage on its extensive footprint and expertise, as guided by its three-year strategic plan, to help businesses unlock new avenues for growth across the region through cross-border trade and investment.

“As sustainability increasingly becomes a business imperative, we are committed to supporting local companies, especially the SMEs, transition to green practices and increase their competitiveness in the global value chain.”

“The acquisition of Citigroup’s consumer banking business has further strengthened UOB Malaysia’s retail franchise and unlocked new opportunities for better product offerings and global partnerships. With the successful integration in July 2023, the bank will continue to extract value from the synergy of the two portfolios to drive growth,” she added.