Singapore, Feb 24, 2026, 18:37 SGT — The market has closed.
- UOB slid 4.1% on Tuesday, weighing most heavily on the STI, after posting a decline in fourth-quarter profit.
- The bank dialed back its 2026 fee-income growth target, sticking with a cautious stance on certain offshore credit exposures.
- Margin pressure is drawing investor attention, along with provisioning and the schedule for April dividends.
United Overseas Bank (UOBH.SI) dropped 4.1% to S$37.20 by the Tuesday close, the steepest fall on Singapore’s Straits Times Index as the bank reported softer quarterly earnings and trimmed a major 2026 fee-growth goal. Volume hit roughly 7.55 million shares. (The Business Times)
Why does this matter? Investors want clarity on just how quickly earnings at Singapore’s largest banks might slow as interest rates ease off, eating into loan margins. Fee income is hanging in there. UOB’s numbers offer a first look at how much banks can still count on Southeast Asia’s growth—especially once trade and political tensions start to bite.
Broad losses hit the market, with the STI dipping 0.4% to 5,020.79. DBS shed 0.5%, OCBC slid 1.2%, so all three local banks wrapped up the session in negative territory. (The Business Times)
UOB posted net profit of S$1.41 billion for October-December, down 7%, but still ahead of the LSEG poll average. For the whole of 2025, net interest margin narrowed to 1.89% from 2.03%, with net interest income dropping 3% to S$9.36 billion. Fee income, though, climbed 7% to an all-time high of S$2.6 billion, lifted by wealth and loan fees. (Reuters)
Chief executive Wee Ee Cheong kept his tone steady on prospects in the region, describing the “ASEAN 4” markets as a relative bright spot. Still, he pointed out that much of the outlook depends on factors beyond what management can influence. “The market is very uncertain. The biggest risk is something that is a little bit beyond our control,” he said. (Reuters)
UOB is revising its outlook, now projecting high single-digit fee growth for 2026—down from its previous forecast that stretched from high single- to double-digit gains. Executives cited a more cautious growth environment, even as they highlighted opportunities in trade-related banking with supply chains moving around the region. (Reuters)
The bank announced a final dividend of S$0.71 per share, lifting its total payout for 2025 to S$1.56 a share. Shares changed hands on a cum-dividend basis Tuesday, leaving buyers eligible for the dividend, though the stock touched a one-month low earlier in the session. (The Business Times)
No real fresh upside for bulls here: Analysts remain keen on more capital returns. CGS International stuck with its “hold” rating, highlighting no new capital return plans and warning about potential weakness in ASEAN markets, plus the threat of more provisioning linked to Greater China commercial real estate. (Reuters)
UOB’s top brass has its own watchlist. Finance chief Leong Yung Chee pointed to credit-cost “hot spots” tied to commercial real estate in Greater China and the United States — portfolios that might look calm for a while before trouble shows up. (CNA)
Market’s closed, so attention flips to Wednesday and what’s next: investors’ appetite for management’s ASEAN growth narrative, plus fresh signs on margin pressure as rates shift. Still to come: the final dividend schedule. Shares go ex-dividend April 24, with payout set for May 8. (Shareinvestor)
