- 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.
