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

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

Read also Maybank's most recent report:
2025-05-07 UOB - Operating In Uncertainty; Limited Growth Visibility..

Previous report by Maybank:
2025-02-19 UOB - ASEAN Connector ~ Regional Positioning To Drive Growth, ROE..

Price targets by 2 other brokers at UOB Target Prices.

Listing of research reports at UOB Analyst Reports.

Relevant links:
UOB Share Price History,
UOB Announcements,
UOB Dividend Payout Dates & Corporate Actions,
UOB News