UOB Lowers Outlook on Tariff Impact After 6% Drop in Q2 Profit

Bank remains confident in the long-term prospects in S-E Asia: CEO

- Benjamin Lim

UOB on Aug 7 posted a 6 percent drop in net profit for the second quarter of 2025 as interest rates declined, with the lender trimming its outlook for the year, citing the impact of US tariffs.

Net profit for the three months to June 30 was $1.34 billion, down from $1.43 billion in the year-ago period, missing the $1.48 billion forecast in a Bloomberg poll of analysts.

This was also a 10 percent drop compared with its earnings of $1.49 billion in the previous quarter, which was also below analyst expectations.

UOB shares closed down 1.8 percent, or 64 cents, at $35.81 on Aug 7, after its results announcement.

UOB declared an interim dividend of 85 cents a share for the half-year, down from 88 cents a year ago. Shareholders will also get a second tranche of a special dividend of 50 cents per share—part of the bank's capital distribution package announced in February.

Net interest income for the quarter fell 3 percent to $2.34 billion. This came as net interest margin (NIM) dropped nine basis points from the first quarter to 1.91 percent.

Net fee income rose 3 percent to $636 million—the bank's second-highest for a quarter—with broad-based growth across wealth management, loan-related services and credit card fees.