UOB - CGS-CIMB Research 2024-02-22: Steady Earnings In 4Q23; Prioritising Funding Cost Reduction

UOB - Steady Earnings In 4Q23; Prioritising Funding Cost Reduction

UOB (SGX:U11) | SGinvestors.ioUOB (SGX:U11)
  • 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.
  • - Read this at SGinvestors.io -

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%).
  • - Read this at SGinvestors.io -
  • 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

  • Read more at SGinvestors.io.

Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.

Andrea CHOONG CGS-CIMB Research | LIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 2024-02-22

Previous report by CGS-CIMB:
2023-10-27 UOB - Going Defensive; 3Q23 Softer NIM Offset By Fees.

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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