- 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.
