- 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
