KUALA LUMPUR (May 10): Higher non-interest income and net interest income pushed UOB Malaysia’s total operating income in 2022 to RM3.9 billion, up 15.2% from the year before.
In a statement on Wednesday (May 10), the bank said net interest income rose 11.3% to RM2.7 billion, due to its proactive balance sheet management and the interest rate increases in 2022, while non-interest income jumped by 28.3% to RM1.1 billion.
Meanwhile, profit before tax dropped 12.9% to RM1.3 billion in 2022 from the year before, largely due to a one-off expense incurred from acquiring the consumer banking business of Citigroup in the country.
UOB Malaysia said the acquisition was a “strategic move to strengthen its franchise in Malaysia”.
“At the same time, the bank continued to invest in technology infrastructure to support future growth,” it said.
The acquisition of Citigroup’s local business significantly increased UOB Malaysia’s gross loans, advances, and financing portfolios by 17.4% to RM105.7 billion, from RM90 billion in 2021, while its non-bank deposits portfolio expanded by 14.2% to RM110.9 billion, from RM97.1 billion a year earlier.
“The bank’s asset quality remained robust. With strong post-pandemic economic recovery, total allowances for expected credit losses declined by 70.9% or RM340.7 million. This was largely attributable to the write-back of expected credit losses on non-impaired assets, as well as commitments and contingencies, coupled with lower expected credit loss on impaired assets,” it said.
UOB Malaysia chief executive officer Ng Wei Wei said it will continue to support local businesses to decarbonise by leveraging its sustainable finance frameworks and explore regional expansion, including capitalising on growing cross-border trade opportunities.
“We will continue to invest in our supply chain management platform to drive foreign direct investment and trade, in line with our aspiration to be the top cross-border bank in Asean,” she added.