The stock was down as much as 4.6% in Singapore on Tuesday as the lender reported a decline in lending margins. Net income earlier fell 7.4% to S$1.41 billion in the three months that ended Dec 31, less than the S$1.45 billion average estimate of analysts surveyed by Bloomberg.

Fee growth will be in a “high single-digit” percentage for the year, chief executive officer Wee Ee Cheong said. Earlier he had guided for a range of high single-digit to double-digit gains. He maintained the rest of the year’s outlook, including a full-year net interest margin in a range of 1.75% and 1.80%.

The lender declared a final dividend of 71 Singapore cents per share, down 23% from 92 cents a year earlier, bringing the total 2025 payout to S$1.56. The final number was below consensus, said Yong Hong Tan, Singapore-based analyst at Citigroup Inc.

Singapore’s banks are grappling with declines in lending income as lower benchmark rates compress margins. Still, the lenders are enjoying a bonanza in wealth fees. DBS Group Holdings Ltd., the city-state’s biggest bank, reported a 10% drop in quarterly profit earlier this month.

Gains in fee income including from wealth were also offset by a 28% slump in trading and investment income. Wealth assets under management expanded to S$201 billion.

UOB jolted investors in early November after booking its biggest-ever provision of S$615 million for commercial real estate loans that could go bad in the future, sending its shares slumping. The allowance surge was excluded from final-dividend calculation, the bank said.