- Downgrade UOB (SGX:U11) to ACCUMULATE with an unchanged UOB's target price of S$34.90 as we account for recent performance of UOB's share price. Our FY24e estimates remain unchanged.
- - Read this at SGinvestors.io -
- UOB has maintained their FY24e guidance of low-single-digit loans growth, NIM to come in above 2%, double-digit fee income growth, stable cost-to-income ratio of around 41-42% and credit cost at the lower end of 25-30bps.
The Positives
Fee income rises from broad-based growth.
- - Read this at SGinvestors.io -
- Card fees similarly grew by 35% y-o-y and 8% q-o-q, resulting in fee income rising by 18% y-o-y to a near record level.
- Notably, wealth management assets under management, or AUM, grew 10% y-o-y to S$182bn from net new money inflows of S$3bn for the quarter.
- Fee income makes up 18% of UOB's total income (2Q23: 15%).
Allowances & credit costs improve.
- Read more at SGinvestors.io.
