- Post meeting with UOB (SGX:U11)’s management, we think UOB's 2Q24 PATMI could ease q-o-q if trading & investment (T&I) income normalises from 1Q24’s high level. See earnings calendar for UOB's earnings release date.
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2Q key trends likely mixed.
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- We understand that the reduction in deposit rates have not had a major impact on UOB’s deposit market share so far and, for now, no decision has been made on whether to undertake another round of rate cuts.
- As for non-II, we expect fee income to remain healthy but believe the normalisation of T&I income will dampen overall operating income. 1Q24 T&I income was S$522m and, based on the guided run rate of S$350-400m/quarter, non-II and operating income growth may soften ahead.
- Lastly, asset quality continues to hold up and UOB has not noted any adverse developments.
Integration of Citi Thailand
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