UOB Pauses Profit Guidance Amid Tariff Turmoil as Q1 Earnings Miss Expectations

UOB on May 7 reported flat earnings for the first quarter, missing analysts' expectations, as macroeconomic uncertainties from US tariffs weighed on the bank's performance.

- Sheila Chiang

For the January-March quarter, UOB's net profit stayed unchanged year on year at $1.49 billion.

The earnings missed the $1.54 billion forecast by analysts in a Bloomberg poll.

In a statement, UOB chief executive Wee Ee Cheong said that macroeconomic uncertainties from US tariffs had triggered significant market volatility and disruptions in global trade.

"We anticipate a slowdown in global growth in the near term and remain vigilant amid the uncertain global outlook," he said.

UOB shares fell 1.4 per cent, or 49 cents, to close at $34.49 on May 7.

Singapore's third-largest bank also paused its 2025 earnings guidance, saying it will resume this when the macroeconomic situation stabilises.

At its fourth-quarter results briefing in February, it forecast high single-digit loan growth and double-digit fee growth in 2025.

Still, the current uncertainties are not as bad as during the Covid-19 pandemic, Mr Wee said at a results briefing on May 7.

During the first quarter, credit costs increased 12 basis points (bps) year on year to 35 bps to strengthen provision coverage.

In comparison, credit costs went up to 57 bps during Covid-19, UOB said.