United Overseas Bank - Maybank Research 2024-02-22: ASEAN Growth Positive; Dividends Unlikely To Surprise

United Overseas Bank - ASEAN Growth Positive; Dividends Unlikely To Surprise

UOB (SGX:U11) | SGinvestors.ioUOB (SGX:U11)
  • UOB (SGX:U11)’s FY23 earnings were ahead of expectation. Better net-interest income helped and so did lower provisions for bad loans. However, net-interest margins are set to see increased pressure going forward from lower loan yields and higher funding costs.
  • - Read this at SGinvestors.io -

Net-interest margins pressure, yet net-interest income held up.

  • UOB's 4Q23 net-interest margins of 2.02% fell -20bps y-o-y. December exit net-interest margins stand at similar levels, pointing to further softening in 1Q24. Loan margins seem to be moderating fast in the face of competition for a narrow pool of high quality customers.
  • - Read this at SGinvestors.io -
  • Low-cost current and savings accounts (CASA) to total deposits have increased to 48.9% in 4Q23 vs 47.5% a year ago. This is positive, but might not be enough to offset the loan yield declines.

Non-interest income boost

  • Read more at SGinvestors.io.

Above is the excerpt from report by Maybank Research.
Clients of Maybank Securities may be the first to access the full report in PDF @ https://maybanktrade.com.sg/.

Thilan Wickramasinghe Maybank Research | https://www.maybank-ke.com.sg/ 2024-02-22

Previous report by Maybank:
2023-10-26 UOB - Moderating Growth; Ahead Of Consensus But Momentum Falling.

Price targets by 4 other brokers at UOB Target Prices.

Listing of research reports at UOB Analyst Reports.

Relevant links:
UOB Share Price History,
UOB Announcements,
UOB Dividends & Corporate Actions,
UOB News Articles


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