United Overseas Bank - RHB Invest 2024-11-11: 2025 Shaping Up To Be An Interesting Year

• 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 SGinvestors.io

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