Singapore's UOB posts core 2022 operating profit of $13 mln in Vietnam

Singapore-headquartered United Overseas Bank (UOB) posted a core operating profit of S$17 million ($12.75 million) from activities in Vietnam in 2022, quadruple that in 2021 of S$4 million.

In the last quarter of 2022, UOB made a core operating profit of S$5 million ($3.75 million) in Vietnam, down from S$7 million ($5.25 million) from the previous quarter.

Operating profit is the net income derived from a company's core operations.

According to the bank’s report for 2022, UOB recorded its gross loans in Vietnam at S$2 billion ($1.5 billion) and total funding of S$1 billion ($0.75 billion).

For global operation, UOB’s core operating profit increased 20% year-on-year to S$6.56 billion ($4.92 billion) in 2022. Of which, Singapore was the largest with S$3.82 billion ($2.86 billion), up 36%. While the rest of Southeast Asia’s figure was S$1.43 billion ($1.07 billion), up 8%.

The lender anticipated Asia to sustain its growth in 2023, with Vietnam’s GDP growth estimated at 6.6% this year, the highest figure in Asia. The figure for China is 5.2%, Indonesia 5%, Malaysia 4%, and Thailand 3.7%.

In mid-March, the World Bank said that Vietnam’s economic expansion might ease to 6.3% in 2023 from a robust 8% last year, reflecting domestic and external headwinds.

UOB was given a license to operate in Vietnam as a wholly foreign-owned bank in 2017. The bank has eight branches and offices in Vietnam, and its head office is in District 1, Ho Chi Minh City.

As part of UOB’s plan to buy Citi’s consumer banking assets in Indonesia, Malaysia, Thailand, and Vietnam for nearly S$5 billion ($3.7 billion), the bank completed the acquisition in Vietnam earlier this month.

UOB’s acquisitions in the four markets are expected to further strengthen and scale up its franchise in Southeast Asia. Once completed, the acquisitions in the four markets will double UOB’s existing retail customer base and add 5,000 staff members to its workforce.

Deutsche Bank recorded a pre-tax profit of 21 million euros ($22.6 million) on a net revenue of 34 million euros ($36.6 million) from its Vietnam operations in 2022, according to the bank’s annual report.

The bank made a pre-tax profit of eight million euros ($8.62 million) on a revenue of 20 million euros ($21.54 million) in 2021. As a result, the two figures for 2022 skyrocketed 162.5% and 70% year-on-year, respectively.