- UOB (SGX:U11)’s 9M23 core-earnings were marginally ahead of MIBG/Street expectations on supportive NII anchored by higher margins. Fee income support came from credit card while wealth and trading income saw slowing momentum.
- - Read this at SGinvestors.io -
- All in, a good set of numbers in line with our thesis of high earnings base, falling growth and resilient dividends.
- We maintain HOLD on UOB with target price of S$30.86.
Margins support performance
- UOB's 9M23 net interest income (NII) rose 26% led by 38bps jump in NIM to 2.12%. 3Q23 NII was flat sequentially and rose 9% y-o-y.
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- Deposits grew 1% q-o-q, 2% y-o-y led by customer inflows from North Asia. CASA ratio is up 0.6%qoq.
- Excluding FX impact, loans to ASEAN ex-Singapore rose 9% y-o-y. Management maintains the mid-single digit loan growth guidance for FY24 and steady margins (exit NIM for 3Q was 2.08%).
Non-interest income remains challenged
- Read more at SGinvestors.io.
