- Aside from asset quality, UOB reported a positive set of numbers, with capital as a key highlight.
- Its fully loaded CET-1 ratio is now in line with peers and as such, capital management initiatives are in play. The market has reacted positively to this, with UOB's share price up 7% last Friday. Hence, despite our upgrade to earnings and UOB's target price, the potential upside is still limited.
- - Read this at SGinvestors.io -
3Q24 results in line.
- 3Q24 reported net profit of S$1.6bn (+13% q-o-q, +16% y-o-y) brought UOB's 9M24 PATMI to S$4.5bn (+5% y-o-y), at 77-78% of our and consensus FY24F PATMI. We view the results to be in line as rate cuts kick in in 4Q24 while trading income is unlikely to be sustained.
- - Read this at SGinvestors.io -
- More importantly, UOB is now on par with peers in terms of fully loaded CET-1 ratio vs being 140-210bps lower in 2Q24. Management said the uplift was aided by its conservative approach towards capital computation in Singapore while its ex-Singapore operations were already on the standardised model.
Results highlights.
- Read more at SGinvestors.io.
Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-11-11
Read also RHB's most recent report:
2024-11-20 United Overseas Bank - Time To Shine; Upgrade To BUY.
Price targets by 4 other brokers at UOB Target Prices.
Listing of research reports at UOB Analyst Reports.
Relevant links:
UOB Share Price History,
UOB Announcements,
UOB Dividends & Corporate Actions,
UOB News Articles