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.
Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
