United Overseas Bank said its fourth-quarter net profit rose, thanks to loan growth, and announced a S$3 billion package to distribute surplus capital.

Net profit, including one-off expenses, jumped 8.55% to 1.52 billion Singapore dollars, equivalent to US$1.13 billion, the bank said Wednesday.

Total income during the quarter climbed 1.5% to S$3.46 billion, while net interest income rose 1.95% to S$2.45 billion.

Income from fee and commission was relatively unchanged at S$567 million.

For the full year of 2024, the bank's net profit rose 5.8% to a record S$6.045 billion.

The bank announced a S$3 billion package to distribute surplus capital over the next three years. The package includes special dividends and share buyback.

The total dividend for 2024 will be S$1.80 per ordinary share, representing a payout ratio of about 50%, it said.

"Despite global uncertainties, we are confident that the Asean region will remain resilient, supported by higher domestic retail spending and stronger influx of foreign direct investment," said Wee Ee Cheong, UOB's deputy chairman and chief executive officer.