* Q4 net profit S$558 mln vs S$706 mln year ago
* Year-ago profit boosted by S$152 mln one-time gains
* Reduced exposure to French banks, looking at Myanmar
(Adds comments, details)
SINGAPORE, Feb 23 (Reuters) - United Overseas Bank Ltd
, the smallest of Singapore's three banking groups,
reported a 21 percent fall in quarterly profit due to lack of
one-off gains and as it booked losses on its European debt
exposure.
The bank however remains confident on its prospects.
"Asia continues to show resilience in the face of ongoing
uncertainty from the West. And we remain optimistic this
resilience will continue," UOB CEO Wee Ee Cheong said in a
statement on Thursday.
"Our core business remains strong and we are well-positioned
to capture new opportunities across Asia," he said.
UOB, which also has operations in Malaysia, Indonesia and
Thailand, reported net profit of S$558 million ($443 million) in
the three months ended December, down from S$706 million a year
ago. The results lagged the S$575 million average estimate of
six analysts polled by Reuters.
Excluding a one-time gain of S$152 million from the sale of
assets in the fourth quarter of 2010, the Singapore bank's net
profit edged up 0.8 percent from a year ago.
Singapore banks have been reporting strong loans growth
since the start of last year as some European banks reduced
their exposure to Asia to meet tougher capital requirements at
home.
This month, DBS Group Ltd, Singapore's and
Southeast Asia's biggest lender by assets, reported a
better-than-expected 8 percent rise in quarterly earnings, while
Oversea-Chinese Banking Corp, the city-state's number
two, said fourth quarter net profit rose 18 percent.
UOB's shares have jumped about 20 percent so far this year,
with financials leading a rally in the broader market.
UOB's net interest income grew 13 percent to S$978 million
as customer loans rose 26 percent and net interest margin
widened to 1.95 percent from 1.89 percent in the third quarter.
Fee and commission income rose 5.4 percent to S$327 million.
UOB further reduced its exposure to Europe and held S$1.58
billion in European investment securities at the end of
December, down from S$2.63 billion at end-June, as it slashed
its exposure to French banks.
The bank grew its dollar deposits by 18 percent in the
fourth quarter from July-September to bring its loan-to-deposit
ratio for the greenback below the 100 percent level.
Wee expects the bank's loans growth to be in the low teens
this year. He also said margins on U.S. dollar-denominated loans
were good given the lack of liquidity in the region.
UOB is also looking for opportunities in Myanmar and said it
already had a representative office and existing relationships
in the country.
($1 = 1.2593 Singapore dollars)
(Editing by Anshuman Daga)
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