UOB - DBS Research 2024-11-08: Look Towards Active Capital Management Plans

UOB - Look Towards Active Capital Management Plans

Published:
UOB (SGX:U11) | SGinvestors.io
  • 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 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





Advertisement

You May Also Like




SGX Stock / REIT Search

Advertisement

Most Read

Trust Bank God Of Fortune Referral Code PGKPSWAE Trust Bank Referral Code 🎁

Advertisement