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.