- UOB (SGX:U11) delivered 1Q24 net earnings of S$1.6b, +5% q-o-q or -1% y-o-y. Delving into the financials revealed that NII fell 2% y-o-y and -2% q-o-q to S$2.4b, but net fee income rose 5% y-o-y and +2% q-o-q to S$580m.
UOB's 1Q24 earnings came in better than consensus expectations.
- - Read this at SGinvestors.io -
- On the non-interest income front, the key drivers were its wealth management business (+5% y-o-y and +9% q-o-q to S$164m for 1Q24) and credit card fees (+11% y-o-y, but down 28% q-o-q to S$90m due to seasonal high in 4Q23).
Strong contribution from wealth, credit card and trading income.
- As a recap, UOB's credit card fees were one of the key drivers in FY23, enjoying a strong 50% y-o-y growth to S$940m.
- - Read this at SGinvestors.io -
Total AUM rose 11% y-o-y to S$179b.
- This was an improvement from S$176b as at the end of 2023. Allowances of S$163m in 1Q24 was down 4% y-o-y, but up 7% q-o-q. Cost-to-income ratio came off from 43.2% in 4Q23 to 41.9% in 1Q24 (FY23: 41.5%).
- Non-performing loans ratio was stable at 1.5%. New non-performing asset (NPA) formation also came off sharply from S$301m in 1Q23 to S$249m in 1Q24. NPA coverage was healthy at 99%.
- Loan-to-deposit ratio was also stable at 82%.
- Return-on-equity (ROE) was 14.0%.
No change in management guidance for 2024
- Read more at SGinvestors.io.
Above is the excerpt from report by OCBC Investment Research.
Clients of OCBC Securities may be the first to access the full report in PDF @ https://www.iocbc.com/.
Carmen Lee OCBC Investment Research | https://www.iocbc.com/ 2024-05-08
Read also OCBC's most recent report:
2024-08-01 United Overseas Bank - Credit Card & Wealth Led Growth.
Price targets by 3 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
