UOB grants one-off half-month bonus to 6,000 junior staff following latest financial results

The supplementary payout recognises contributions made in a challenging external environment, as the bank reports resilient earnings for FY2025.

Junior employees at United Overseas Bank (UOB) will receive a one-off supplementary payout equivalent to half a month of base salary, in recognition of their efforts over the past year.

The payment will be made to about 6,000 employees across the Group in the second quarter of this year, amounting to roughly S$4mn in total. UOB said the move reflects its commitment to a fair and competitive wage structure, supported by long-term benefits such as enhanced medical support and training programmes.

Profits remain strong despite lower net earnings

The bonus comes as the bank reported a resilient set of financial results for the year ended 31 December 2025 (FY25). Operating profit reached S$7.7bn, supported by strong fee momentum across both wholesale and retail banking businesses.

Net profit, however, fell 23% year on year to S$4.7bn. The decline was largely attributed to pre-emptive general allowances set aside in the third quarter to strengthen provision coverage amid growing macroeconomic uncertainties.

Net interest income eased 3% to S$9.4bn due to lower benchmark rates compressing margins, even though loan growth remained healthy at 4%. In contrast, net fee income rose 7% to a record S$2.6bn, driven by double-digit growth in wealth management and loan-related fees. Customer-related treasury income also reached a new high, reflecting strong demand for hedging and investment services.

Asset quality stayed stable, with the non-performing loan ratio holding at 1.5%.

Shareholder returns and dividend payout

The Board has recommended a final dividend of 71 cents per ordinary share. Together with the interim dividend of 85 cents, total dividends for FY25 will amount to S$1.56 per share, representing a payout ratio of about 50%.

In addition, shareholders received a special dividend of 50 cents per share during 2025, paid in two tranches as part of the Group’s capital management.

Mixed performance across business segments

Group Wholesale Banking saw operating profit fall 8%, affected by lower interest rates and competition for quality assets. Nonetheless, investment banking delivered record fees, while transaction banking continued to perform steadily, supported by a 26% rise in trade loans and growing demand for payments and cash management solutions.

Retail Banking reported operating profit of S$2.3bn, a decrease of 9%. Growth in wealth management income and credit card billings helped offset pressures from lower rates. Retail deposits rose 5%, supported by resilient current and savings account balances, while high-net-worth assets under management increased 6% to S$201bn.

Strong balance sheet and regional outlook

UOB maintained robust capital and liquidity positions, with a Common Equity Tier 1 ratio of 15.1% and liquidity metrics well above regulatory requirements.

Wee Ee Cheong, UOB’s Deputy Chairman and Chief Executive Officer commented: “The Group delivered a resilient full-year performance, fuelled by strong fee momentum across our diversified business franchise. Our balance sheet is strong with robust capital and liquidity and stable asset quality.”

Find the financial performance report here. 

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