SINGAPORE (THE BUSINESS TIMES) – UOB’s net profit for its second quarter rose 42 per cent, as more economies reopened and as it posted lower credit allowance, it said on Wednesday (Aug 4).

Net profit for the three months ended June 30 this year stood at $1.01 billion, compared with $703 million from the year-ago period.

The earnings beat the $968 million consensus forecast in a Bloomberg survey of five analysts.

Following the lifting of a dividend cap, UOB declared an interim dividend of 60 cents per ordinary share, compared with 39 cents a year ago. This translates to a dividend payout ratio of 50 per cent.

The Monetary Authority of Singapore last month lifted its dividend curbs on locally incorporated banks and finance companies based in Singapore.

It joins other central banks that have recently eased dividend restrictions imposed on banks last year, as the global economy rebounds amid gradual reopenings and rapid vaccine roll-outs.

UOB’s dividend will be paid in cash on Aug 27, with the bank suspending its scrip dividend scheme.

Its share price jumped 22 cents, or 0.85 per cent, to $26.07 as at 9.16am, after the results announcement.