UOB - Maybank Research 2024-05-08: Slow & Steady Growth; Limited Dividend Upside

UOB - Slow & Steady Growth; Limited Dividend Upside

UOB (SGX:U11) | SGinvestors.ioUOB (SGX:U11)
  • UOB (SGX:U11)’s 1Q24 core-earnings were marginally ahead of MIBG/Street expectations. This was bolstered by trading income which is volatile.

Steady delivery

  • Operationally, we see slower growth for net-interest income led by peaking loan yields and slow loan growth.
  • - Read this at SGinvestors.io -

Upside to fees. Trading gains volatile

  • Trading related income jumped +32% q-o-q led by UOB’s own trading and liquidity management activities. Management claims the current run rate is sustainable for the rest of the year.
  • While we upgrade 2024E non-interest income by 3% to reflect this, visibility of this sustaining is limited, in our view.
  • - Read this at SGinvestors.io -
  • Credit card contribution to total fees was 15.5% vs 15% a year ago, showing limited gains from lifestyle activities such as partnering the Taylor Swift concerts.

Net-interest income growth limited. Asset quality to remain supported

  • Read more at SGinvestors.io.

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

Thilan Wickramasinghe Maybank Research | https://www.maybank-ke.com.sg/ 2024-05-08

Previous report by Maybank:
2024-02-22 United Overseas Bank - ASEAN Growth Positive; Dividends Unlikely To Surprise.

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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