UOB - DBS Research 2024-05-08: NIM Has Stabilised

UOB - NIM Has Stabilised

UOB (SGX:U11) | SGinvestors.ioUOB (SGX:U11)
  • UOB (SGX:U11)'s 1Q24 revenue came in at S$3,523mil (flat y-o-y, +3% q-o-q) and net profit is S$1,487mil (-2% y-o-y, +6% q-o-q). Core net profit after tax, excluding Citi integration costs (net of tax) of S$79mil, would be S$1,566mil (-1% y-o-y, +5% q-o-q). 1Q24 revenue and profit largely in line with consensus.

Net interest income (NII) declined 2% y-o-y and q-o-q

  • - Read this at SGinvestors.io -
  • Operating costs increased 2% y-o-y and were flat q-o-q, resulting in a cost-to-income (C/I) ratio excluding/including one-off Citi integration costs of 41.9%/44.6% (4Q23: 43.2%/46.8%), respectively.
  • UOB's CET1 ratio improved to 13.9% (4Q23: 13.4%).

Non-interest income increased from the previous quarter.

  • - Read this at SGinvestors.io -
  • Other non-interest income of S$581mil (+3% y-o-y, +32% q-o-q) was driven by record customer-related treasury income from increased retail bond sales and strong hedging demand, and robust performance in trading and liquidity management.
  • Trading and investment income increased significantly to S$521mil (+10% y-o-y, +44% q-o-q) from the previous quarter.
  • Customer-related treasury income of S$219mil (+8% y-o-y,+19% q-o-q) reached a new record high while other trading and investment income of S$303mil (+11% y-o-y, +70% q-o-q) continued to deliver good performance.

Lower credit cost of 23bps; NPL stable at 1.5%.

  • Read more at SGinvestors.io.

Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.

Rui Wen LIM DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-05-08

Previous report by DBS:
2024-04-22 UOB - More Upside In The Works.

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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