Impairment charges fell sharply in the first six months of this year from the last, explaining much of the profit improvement and a pattern seen in many banks around the world as the pandemic situation appears to have improved, at least in terms of the damage to the global economy.

United Overseas Bank, one of Singapore’s main domestic players, this week reported a 29 per cent year-on-year rise in net earnings to S$2.0 billion ($1.47 billion) for the first half of 2021.

Net earnings for the second quarter stood at S$1.0 billion, a year-on-year jump of 43 per cent, it said in a statement. 

Impairment charges fell sharply in the first six months of this year from the last, explaining much of the profit improvement - a pattern seen in many banks around the world as the pandemic situation appears to have improved, at least in terms of the damage to the global economy.

The Group's retail revenue rose 1 per cent to S$2.1 billion, in spite of a decline in net interest income. In the first half of this year, wealth management fees rose 32 per cent and assets under management (AuM) from affluent clients rose 7 per cent to S$137 billion. 

The bank’s board declared an interim dividend of 60 cents per ordinary share. This translates to a dividend pay-out ratio of 50 per cent. (The Monetary Authority of Singapore recently rescinded its dividend cap which had been put in place last year when the pandemic erupted.)

As at 30 June 2021, the Group's Common Equity Tier 1 Capital Adequacy Ratio was 14.2 per cent.