With the weakness in regional markets following the past few days of tense trade war, UOB's share price was similarly impacted.
Share price volatility.
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From S$39.20 (recent high) to S$29 (today’s low), this meant that the recent decline has wiped off S$17.1b from its market capitalisation.
Earnings during Trump 1.0.
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In addition, non-interest income as a percentage of total income was healthy at 32.3% or S$4.6b in FY24. If we assume a reversion back to the Trump 1.0 scenario of net profit of S$3.7b per year, or an aggressive decline of S$2.6b in profits from FY24, both interest income and non-interest income have to fall sharply, and this is not our base case assumption.
Outlook is murky for now, but possibility of trade negotiations.
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Above is an excerpt from a report by OCBC Investment Research. Clients of OCBC Securities may be the first to access the full PDF report @ https://www.iocbc.com/.
