United Overseas Bank - OCBC Investment 2024-08-01: Credit Card & Wealth Led Growth

• Riding on its growing ASEAN footprint, UOB (SGX:U11)’s wealth and credit card continued to show good growth.

2Q24 earnings eased off from 1Q24.

• UOB delivered 2Q24 net earnings of S$1.49b, -5% q-o-q or -1.3% y-o-y. This is a decline from 1Q24 net earnings of S$1.57b but is above weaker market consensus of S$1.47b.
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Card & wealth management led growth.

• On fee income, both credit card and wealth management showed good gains. The former grew 35% y-o-y or 8% q-o-q to S$97m in 2Q24, while the latter rose 22% y-o-y or 6% q-o-q to S$173m.
• Total AUM increased from S$176b at the end of 2023 to S$182b now, up 3.4%.
• Both card and wealth management benefited from UOB’s wider presence in ASEAN following the integration of Citigroup’s operations in Malaysia, Indonesia and Thailand. The integration of Citigroup Vietnam is expected to complete in 2025.

Net Interest Margin (NIM) of 2.05%.

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Fairly optimistic guidance

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Carmen Lee OCBC Investment Research | https://www.iocbc.com/ 2024-08-01 SGinvestors.io

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