By SHAHEERA AZNAM SHAH / Pic By TMR
United Overseas Bank (M) Bhd’s (UOB Malaysia) net profit rose 8% year-on-year (YoY) to RM1.24 billion for its financial year ended 2018 (FY18), contributed by its long-term strategic investment.
The bank said its total operating income increased 3.6% to RM3 billion in FY18, while net interest income rose 2.3% to RM2.07 billion as a result of higher interest income loans.
“The bank’s earnings growth was driven by its commitment to meet its long-term strategic priorities.
“Net interest income grew 2.3% on the higher interest income from loans, fair value through other comprehensive incomes, as well as available-for-sale securities.
“Non-interest income grew 4.6% to RM900 million, supported by higher fee income and foreign-exchange gains,” the bank said in a statement yesterday.
For the Shariah-compliant division, the net income of UOB Malaysia’s Islamic banking business grew 72.2% to RM40.8 million in FY18.
Its gross loans, advances and financing rose 5.3% to RM83.3 billion, while the non-bank deposits increased 6.4% to RM88.7 billion during the year.
UOB Malaysia said it has been prudently managing its expenses and maintained a cost-to-income ratio of 39% last year.
“The bank’s total operating expenses increased 8.1% to RM1.17 billion as it continues to invest in its people and technology infrastructure to support business growth,” it said.
UOB Malaysia CEO Wong Kim Choong said the bank’s performance in 2018 was the result of its long-term investments