UOB Malaysia posts 15.2pct higher operating income in 2022

KUALA LUMPUR: UOB Malaysia's total operating income rose 15.2 per cent to RM3.9 billion in 2022 due to stronger non-interest and net interest incomes.

The bank said net interest income increased 11.3 per cent to RM2.7 billion due to its proactive balance sheet management, coupled with the favourable movements in interest rates throughout 2022. 

Non-interest income surged 28.3 per cent to RM1.1 billion, as the bank continues to leverage of its regional capabilities and network.

UOB Malaysia reported a higher-than-usual operating expenses of RM2.3 billion (an increase of 69.7 per cent year-on-year), largely attributed to the one-off cost of acquiring Citigroup's consumer banking business in the country. 

At the same time, the bank continued to invest in technology infrastructure to support future business growth. 

"As a result, the bank reported a profit before tax of RM1.3 billion, 12.9 per cent lower than previous year," it said. 

UOB Malaysia chief executive officer Ng Wei Wei said 2022 was a defining year for it. 

Ng said the  bank had completed the acquisition of Citi consumer banking business in November, and strengthened its 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. 

"We remain confident of the country's long term growth potential, as reflected by our continued investment including our new state-of-the-art and green headquarters, UOB Plaza 1 KL," she said. 

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 said its asset quality remained robust. 

With the strong post pandemic economic recovery, total allowance for expected credit losses declined 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.

Recently, UOB Malaysia was ranked in the top two banks in Malaysia by Forbes' World's Best Banks 2023. 

Ng said the ranking was particularly meaningful as the survey was independent and represented the voices of our customers.

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