UOB's first-half profit falls

UOB's first-half profit falls

SINGAPORE (AP): One of Singapore's big four banks is expected
to announce a huge drop in profits for the first half of 1998
because of the regional economic crisis, analysts said
yesterday.

United Overseas Bank Ltd. (UOB) will likely post a 60 to 70
percent fall in net profit when it announces it half-year results
later Friday, the first Singapore bank to unveil interim results
this season.

The plunge in profits is primarily due to large provisions for
bad loans and investments in the region, as economic and
financial conditions deteriorate in Asia, market observers told
Dow Jones Newswires.

The bank will probably write off about S$200 million (US$116
million) for the first half of this year, dragging down its total
earnings, said DIR Singapore analyst Tony Raza.

The provisions are "due to poor loan quality within the region
and due to the tougher economic environment in Singapore," Raza
said.