United Overseas Bank - RHB Invest 2024-11-20: Time To Shine; Upgrade To BUY

• UOB's share price performance has lagged peers for a large part of the past 23 months, but we think this trend is set to reverse. We see four factors underpinning its outperformance and further valuation rerating ahead:
  1. - Read this at SGinvestors.io -
  2. multi-year investments in platforms and synergies from the Citi acquisition are gaining traction and bearing fruit;
  3. superior FY25 earnings growth prospects vs the sector; and
  4. more aggressive capital returns, thanks to an improved capital position.

UOB offers investors a hideout from market volatility…

• We think market volatility is likely to persist following the 2024 US presidential election outcome. With a largely ASEAN-centric portfolio (loan book: 49%/22% is domestic/ASEAN-4), UOB may offer investors a defensive shelter to ride through the volatility ahead.
• - Read this at SGinvestors.io -
• Trade exposure to the US is relatively low but RHB GEMS does have a caveat that the indirect impact via China could be substantial.

…while regional platforms and Citi acquisition bear fruit...

• Read more at SGinvestors.io.

Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-11-20 SGinvestors.io

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