- UOB beat Street earnings expectations for FY24. Loans are recovering and fees were seasonally resilient. While margins should be under pressure, the Group’s integrated ASEAN strategy can catalyse fees and credit growth going forward. This could also help diversify the loan book towards growth sectors with better credit quality.
- - Read this at SGinvestors.io -
Margin pressure, but offset by loans, fees
- UOB's 4Q24 NIMs fell -5bps q-o-q due to Fed rate cuts. Further cut expectations are delayed.
- Lower cost CASA mix has improved to 54.6% vs 48.9% a year ago. These should give some downside support, but with 4Q exit NIM at 2.0%, we have lowered FY25-26E NII by 8-12%.
- - Read this at SGinvestors.io -
- In fees, Weath Management gave up just -2.7% q-o-q showing resilience. UOB’s Weath Management product is focused primarily on mass-wealth. Management is rolling out a private wealth platform. We believe this should drive upgrade risks. We have raised FY25-26E NoII by 8-13%.
Integrated ASEAN strategy an advantage
- Read more at SGinvestors.io.
