UOB says Q4 net profit jumps 57 pct, beats consensus

SINGAPORE Feb 26 (Reuters) - United Overseas Bank (UOBH.SI), Singapore's third-biggest bank, posted a 57 percent rise in quarterly profit helped by a sharp fall in bad debt charges, beating analysts expectations.

The outlook for Singapore banks, like their Asian peers, is improving with bad debts easing due to a recovery in Asian economies. Corporate fund raising is also helping banks earn more fees and commissions.

UOB posted a net profit of S$522 million ($371 million) in Oct-December, compared with S$332 million a year earlier.

Analysts had predicted a net profit of S$489 million, according to an average forecast of five analysts polled by Reuters.

UOB said in a statement there are signs of improving asset quality as amortisation and bad debt charges slumped 87.7 percent in the fourth quarter from a year earlier.

Singapore banking shares have weakened this year after a big rally last year when a global markets surged following a market meltdown in 2008.

UOB's shares are down about 5 percent this year, broadly in line with the benchmark Singapore stocks .FTSTI, but the decline in share price is less than its two rivals.

(Reporting by Saeed Azhar; Editing by Kevin Lim)