UOB's 3Q24 adjusted earnings of S$1,639mil were slightly above our estimates from a jump in trading and investment income, and higher fee income. 9M24 adjusted PATMI was 76% of our FY24e forecast.
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UOB has maintained their FY24e guidance for double-digit fee income growth and low-single digit loans growth with NIM to hold above 2%, while providing FY25e guidance for “higher total income” from high single-digit loan growth and double-digit fee growth. We expect double-digit trading income growth in 4Q24 from higher volatility surrounding the US elections.
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The Positives
Trading income boost earnings.
Higher trading and liquidity management activities boosted trading and investment income (+131% y-o-y), while customer-related treasury income (+36% y-o-y) reached an all-time high from increased bond sales and hedging demands and makes up 38% of trading and investment income (3Q23: 51%).
Resultantly, other non-interest income surged 71% y-o-y.
Fee income supported by WM.
Read more at SGinvestors.io.
Above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
