UOB Malaysia Operating Income Rises 15% To RM3.9 Billion, However Citibank Deal Impacts Profits

UOB Malaysia has announced an RM3.9 billion in total operating income in 2022, constituting a 15.2 percent increase from the year before. The growth it said was predominantly driven by stronger non-interest income and net interest income.

Net interest income increased by 11.3 percent to RM2.7 billion from proactive balance sheet management, coupled with favourable movements in interest rates throughout 2022 the group said in a statement. Meanwhile, non-interest income surged by 28.3 percent to RM1.1 billion, as the Bank continues to leverage its regional capabilities and network.

Operating expenses were higher than expected at RM2.3 billion (an increase of 69.7 percent year-on-year), largely attributed to the one-off cost of acquiring Citigroup’s consumer banking business in the country. As a result, the Bank reported a profit before tax of RM1.3 billion, 12.9 percent lower than the previous year.

Combined with the retail franchise from Citi consumer banking business, UOB Malaysia’s gross loans, advances, and financing, as well as non-bank deposits portfolios grew significantly to RM105.7 billion (2021: RM90.0 billion) and RM110.9 billion (2021: RM97.1 billion) respectively.

The Bank’s asset quality remained robust. With the strong post pandemic economic recovery, total allowance for expected credit losses declined by 70.9 per cent or RM340.7 million. This was largely attributable to the write-back of expected credit losses of non-impaired assets, as well as commitments and contingencies, coupled with lower expected credit loss for impaired assets.

Ms Ng Wei Wei, Chief Executive Officer, UOB Malaysia said, “2022 was a defining year for UOB Malaysia. We completed the acquisition of Citi consumer banking business in November, and strengthened our retail franchise with an expanded portfolio, touchpoints and partner network. Guided by our three-year growth strategy, we also continued to transform and scale up our infrastructure, digital capabilities, network, people, and brand.”

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