United Overseas Bank - Phillip Securities 2024-05-09: Non-Interest Income Growth Offset NII Decline

United Overseas Bank - Non-Interest Income Growth Offset NII Decline

UOB (SGX:U11) | SGinvestors.ioUOB (SGX:U11)
  • UOB (SGX:U11)'s 1Q24 adjusted earnings of S$1,566mil met our estimates as higher fee income and other non-interest income were offset by lower-than-expected net-interest income (NII) and higher expenses. 1Q24 adjusted PATMI was 25% of our FY24e forecast.
  • - Read this at SGinvestors.io -
  • UOB has maintained their FY24e guidance of low-single-digit loans growth, NIM to come in above 2%, double-digit fee income growth, stable cost-to-income ratio of around 41-42% and credit cost at the lower end of 25-30bps.
  • Maintain BUY with an unchanged UOB target price of S$34.90.

The Positives

Fee income continues to grow.

  • - Read this at SGinvestors.io -
  • Notably, UOB's wealth management assets under management (AUM) grew 11% y-o-y to S$179bn.
  • Credit card fees continued to grow, reaching S$90bn in 1Q24 (+11% y-o-y) but normalized from last quarter’s seasonal high (-28% q-o-q). Fee income makes up 16% of total income (1Q23: 16%).

Trading & investment income rose 10% y-o-y.

  • Read more at SGinvestors.io.

Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.

Glenn Thum Phillip Securities Research | https://www.stocksbnb.com/ 2024-05-09

Previous report by Phillip:
2024-02-26 United Overseas Bank - NII Hurt By NIM Decline & Flat Loan Growth.

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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