UOB - Phillip Securities 2025-05-09: Stashing Provisions Under The Mattress

• UOB's 1Q25 earnings of S$1.5bn were below our estimates from lower-than-expected net interest income and higher provisions. 1Q25 PATMI was 22% of our FY25e forecast.
• Net interest income inched up 2% from loan growth of 6%, while fee income surged by 20% y-o-y. Allowances jumped 78% from higher general provisions to strengthen their provision coverage.
• - Read this at SGinvestors.io -

The Positives

Loans growth supports net interest income.

• - Read this at SGinvestors.io -
• We expect net interest margin to hold steady as fixed-deposit rates and UOB’s flagship One account interest rates continue to decline.

Fee income surges.

• Read more at SGinvestors.io.

Above is an excerpt from a report by Phillip Securities Research.
Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.

Previous report by Phillip:
2025-02-21 United Overseas Bank (UOB) - Higher Allowances Hurt 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