- Strong balance sheet – UOB’s 1Q25 earnings were ahead of MIBG and in-line with Street. Operating metrics were good, but may not be reflective of what is to come given a backdrop of extremely unpredictable US policy.
- - Read this at SGinvestors.io -
1Q25 metrics fine, but backward looking
- NIMs held flat q-o-q at 2.0% despite fast falling domestic rates. UOB is managing liquidity well (55% CASA/deposits vs 51% in 1Q24).
- Loans expanded +6% y-o-y – the fastest since 2021. However, 10% of loans are for trade, and another 10% are SMEs. These sectors may see direct disruptions as Liberation Day uncertainty bites going forward.
- - Read this at SGinvestors.io -
- We take account of higher than expected trading income and lower opex, and adjust 2025-27E EPS by 6-7%.
Strong balance sheet and liquidity
- Read more at SGinvestors.io.
