UOB (UOB) Q2 2026 Earnings Report

The call presented a broadly positive operational and financial picture: solid quarterly profit growth, strong wealth and transaction banking momentum, resilient capital and liquidity metrics, and active shareholder returns. These positives are tempered by margin compression, fee moderation, a notable new NPA linked to a Greater China real estate exposure, and near-term expense pressures from strategic investments. Management reiterated disciplined capital and provisioning frameworks and provided conservative guidance for loans and fees while highlighting initiatives (Allianz partnership, AI adoption, regional expansion) to drive medium-term growth.

Management reiterated 2026 guidance for low‑single‑digit loan growth; a full‑year NIM of about 1.75–1.80%; fee income growth at low single digits; operating expenses rising low single digits; and total credit cost of 25–30 bps. This outlook is supported by current results and metrics: Q2 net profit $1.5bn (H1 $2.9bn) and Q2 ROE 11.8%; NIM trending from 1.82% (Q1) to 1.74% (Q2) and ~1.71% end‑July; gross loans +8% YoY, customer loans +5% YoY, trade loans +30–33% and wholesale CASA +9% YoY; wealth invested AUM +15% and wealth income +16% YoY (ASEAN‑4 +30%) with $4bn net new money H1; asset quality NPA ratio 1.6% with NPA coverage 88% (306% incl. collateral) and total credit cost ~27–28 bps YTD; liquidity and capital metrics include LCR 159%, NSFR 114% and CET1 ~15.4% (15.0% fully loaded); interim dividend $0.88/sh (50% payout) and $2bn buyback program 40% complete ($794m).