- UOB's 3Q24 revenue and profit beat consensus by over 6%. 3Q24 revenue came in at S$3,834mil (+11% y-o-y, +10% q-o-q) and net profit is S$1,610mil (+16% y-o-y, +13% q-o-q). Core net profit after tax, excluding Citi integration costs (net of tax) of S$28mil, would be S$1,639mil (+11% y-o-y, +10% q-o-q).
- - Read this at SGinvestors.io -
- CET1 ratio improved to 15.5% (2Q24: 13.4%).
Non-interest income jumped 34% y-o-y and 28% q-o-q.
- UOB's record net fee income of S$630mil (+7% y-o-y, +2% q-o-q) was driven by a strong pick-up in loan and wealth fees.
- - Read this at SGinvestors.io -
Higher credit cost of 34bps; NPL stable at 1.5%.
- 3Q24 credit cost ticked up q-o-q to 34bps (2Q24: 24bps) as specific credit costs inched up.
- General allowance performing loans coverage maintained at 0.9% q-o-q. Total loan allowances of S$281mil, 36bps (2Q24: S$194mil, 24bps), including general allowances (stage 1+2) of -S$15mil, -2bps (2Q24: S$25mil, 3bps), and specific allowances (stage3) of S$ 296mil, 36bps (2Q24: S$169mil, 21bps) were mainly due to Thailand operational merger issues, which will normalise in the next two quarters.
- New NPA formation was lower at S$212mil (2Q24: S$438mil, average of S$336mil for the last four quarters). NPL remained stable q-o-q at 1.5%.
A strong outlook for 2025
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Rui Wen LIM DBS Group Research | Singapore Research Team DBS Group Research | https://www.dbs.com/insightsdirect/ 2024-11-08
Previous report by DBS:
2024-08-02 UOB - Robust NIM Improvement.
Price targets by 5 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
