United Overseas Bank - OCBC Investment Research 2025-02-19: Record Profits

• UOB (SGX:U11) ended FY24 on a strong note with net profits up 6% to S$6.0b. Excluding one-off items, net profits would have amounted to S$6.2b.
• The strong performance was largely driven by a healthy 7% rise in fee and commission income to S$2.4b. This was boosted by higher wealth management fees. If customer-related treasury income was included, wealth management income improved 30% y-o-y.

UOB's enlarged retail operation now stands at 8.4m customers in ASEAN.

• - Read this at SGinvestors.io -
• Net interest margin (NIM) eased off slightly from 2.09% in FY23 to 2.03% in FY24. Non-performing loans (NPL) ratio was stable at 1.5%.
• Cost-to-income ratio went up from 41.5% in FY23 to 42.5% in FY24.
• - Read this at SGinvestors.io -

Special dividend and share buyback.

• In conjunction with its full year results, UOB has announced a final dividend of S$0.92, bringing the full year dividend to S$1.80 per share. The ex-date is 28 Apr 2025, payable on 13 May 2025.
• It has also announced a special dividend of S$0.50 to celebrate its 90th anniversary. This will be paid out in two tranches in 2025. The first will be S$0.25 on 13 May 2025 (ex-date: 28 Apr 2025), and the second will be on 28 Aug 2025 (ex-date: 15 Aug 2025).
• In addition, it also announced a S$2b share buyback programme where shares will be acquired from the open market and cancelled.

Raising fair value of UOB to S$41.50.

• Read more at SGinvestors.io.

Carmen Lee OCBC Investment Research | https://www.iocbc.com/ 2025-02-19 SGinvestors.io

---