United Overseas Bank offered softer full-year guidance on fee income while reporting higher second-quarter profit.

The bank said Friday that it is now targeting low-single-digit fee income growth for 2026, compared with its outlook for high-single-digit fee growth offered with the previous quarter's earnings. UOB largely maintained its guidance for the full year.

Meanwhile, peers DBS Group and Oversea-Chinese Banking Corp. raised their overall full-year guidance.

UOB's outlook wasn't as upbeat as peers, said RHB Research analysts. The bank's management attributed the weaker fee income guidance to a delay in recognizing some deal-related fees, a shift in consumer spending patterns and higher credit card-related fee expenses, RHB added.

Further, UOB's continued higher nonperforming asset formation seems negative to Citi analyst Tan Yong Hong. The bank's nonperforming asset formation was at 1% of its loans, which is similar to the levels during third quarter of 2025 when UOB booked pre-emptive general provisions, Tan said.

UOB shares fell as much as 2.7% on Friday morning.

The bank's second-quarter net profit rose 10% from a year earlier to S$1.48 billion Singapore dollars, equivalent to US$1.15 billion.

Total income climbed 4% to S$3.60 billion, while net fee income rose 5% to S$665 million on strong growth in wealth and fund management activities. UOB said fee income was supported by record wealth management fees.

Wealth management remains a focus for Singapore's banks as they seek to diversify revenue sources. UOB has said it aims to double its wealth income by 2030.

However, net interest income--the difference between what banks earn on loans and pay on deposits--declined 2% to S$2.30 billion for the quarter, due to lower interest margins in the prevailing lower-rate environment.