- UOB (SGX:U11) recorded 4Q23 core net profit of S$1.5bn (adjusted for one-off Citi integration costs; +1% q-o-q, +7% y-o-y). The adjusted core net profit was in line with our and Bloomberg consensus estimates.
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Key highlights
- UOB's net-interst margin (NIM) declined a steeper 7bp q-o-q to 2.02% in 4Q23 (vs our -3bp estimate) due to increased competition for high-quality credit (vs. our -3bp q-o-q estimate). Full-year NIM came to 2.09% (FY22: 1.86%).
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- Excluding Citi one-off integration costs, CTI stood at 43.2% in 4Q23 (3Q23: 41%). Full-year CTI (same basis) stood at 41.5% in FY23 (FY22: 43.4%).
- Credit costs came up to 25bp in 4Q23 as specific allowances moderated. Full-year FY23 credit costs stood at 25bp, which was within management’s guidance.
2024F outlook updates from UOB management
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