- 4Q24 UOB's dividend was up 8% y-o-y to 85 cents; the full-year FY24 dividend rose 6% y-o-y to 180 cents. A S$3bn capital distribution package (50 cents special dividend in FY25 and S$2bn share buyback) was announced.
- - Read this at SGinvestors.io -
- NII increased from loan growth of 5%, while fee and other non-interest income remained flat. Allowances rose 5% from higher SPs.
- UOB has provided FY25e guidance for “higher total income” from high single-digit loan growth and double-digit fee growth.
- - Read this at SGinvestors.io -
The Positives
NII rises from loan growth.
- NII rose 2% y-o-y from loan growth of 5% y-o-y, despite NIM contracting to 2.00% (-2bps y-o-y) from the declining interest rates. January 2025’s exit NIM was ~2%, and UOB expects NIM to maintain at the current levels for the rest of FY25 as rate cut expectations were lowered.
- We expect NIM to hold steady as UOB continues to manage its cost of funds.
Wealth Management continues to grow.
- Read more at SGinvestors.io.
Above is the excerpt from report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.
Glenn Thum Phillip Securities Research | https://www.poems.com.sg/ 2025-02-21
Previous report by Phillip:
2024-11-11 United Overseas Bank - Other Non-interest Income Boost 3Q24 Earnings.
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 Dividend Payout Dates & Corporate Actions,
UOB News
