KUALA LUMPUR: UOB Malaysia recorded a 12.3% year-on-year (y-o-y) increase in net profit to RM1.14bil in 2021.

       In a statement, the bank said its total operating income grew 4.3% to RM3.35bil on the back of stronger net interest income and higher net income from the Islamic banking business.

       Meanwhile, its total allowances for expected credit losses was 17.7% lower compared with the previous year due to lower expected credit losses on loans, advances, financing and other financial assets for non-impaired assets.

       The bank's operating expenses however increased 5.7% to RM1.36bil as it invested in technology infrastructure to support business growth.

       Over the 12-month period, the bank's gross loans, advances and financing base rose 2.9% to RM90bil and non-bank deposits increased 3.7% to RM97.1bil.

       It said wholesale banking loans and financing grew despite the challenging environment, underpinned by the Islamic banking capabilities and regional networks.

       In addition, total foreign direct investment (FDI) transactions facilitated by the bank increased nearly 20% compared with the year before.

       The bank maintained a strong capital base with Common Equity Tier 1 ratio at 17.7% and Total Capital ratio at 20.5%.

       "Amid the volatile operating environment in 2021, we delivered a commendable performance, growing our operating income and net profit.

       "Through prudent risk management and disciplined business approach, we kept our balance sheet robust while continuing to capture opportunities and grow market share," said UOB Malaysia CEO Ng Wei Wei.

       Moving forward, she said the bank will remain focused on enhancing its technology infrastructure, supporting customers to capitalise on Asean's structural growth trend and transitioning to sustainability through its financing solutions.