United Overseas Bank - UOB Kay Hian 2024-02-23: Building Regional Franchise For Consumer Businesses

• UOB reported net profit of S$1,498m for 4Q23 (+7% y-o-y). Wealth management fees grew 21% y-o-y due to growth in bancassurance and pick-up in demand for fixed income products. Credit card fees grew 69% y-o-y due to higher customer spends and expanded regional franchise after consolidating Citi consumer businesses.
• - Read this at SGinvestors.io -

UOB's 4Q23 results

• United Overseas Bank (UOB, SGX:U11) reported net profit of S$1,498m for 4Q23 (+7% y-o-y), which is in line with consensus estimate of S$1,514m. Including the one-off expenses of S$94m for Citi integration cost, net profit is lower at S$1,403m.

Competition for high quality credits.

• - Read this at SGinvestors.io -
• Loans expanded 2% y-o-y on a constant currency basis. Loan-to-deposit ratio dipped 3.4ppt y-o-y to 82.2%.
• Net interest income dropped 6% y-o-y in 4Q23.

Fees grew at double digit rate.

• Fees increased 17% y-o-y in 4Q23, aided by a low base last year. Wealth management fees grew 21% y-o-y due to growth in bancassurance and pick-up in demand for fixed income products. UOB attracted net new money inflows of S$22b and assets under management from affluent customers grew to 14% y-o-y to S$176b.
• Credit card fees grew by a sizeable 69% y-o-y due to higher customer spends and expanded regional franchise after consolidating Citi consumer businesses.

Trading & investment income increased 78% y-o-y

• Read more at SGinvestors.io.

Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2024-02-23 SGinvestors.io

---