We believe there are lack of catalysts for UOB's share price due to current overhang on asset quality going forward. Management believes there is still some potential challenges to be navigated in terms of asset quality but have already pre-emptively set aside general provisions previously.
- Read this at SGinvestors.io -
4Q25 misses.
UOB top line and bottom line miss on lower than expected non-interest income.
2bps improvement q-o-q on NIM à read through for OCBC (SGX:O39) à likely to see NIM improvement as well from flagship current account deposit rate cuts
New NPA formation still high at S$599m this quarter, but corresponded with S$957m of upgrades, recoveries and write-offs
- Read this at SGinvestors.io -
UOB also lowered FY26 guidance on fee growth for 2026 from high single to double-digit fee growth previously, to high-single digit fee growth, this has impact on EPS and does not bode well for forward DPS (50% payout ratio).
Takeaway from UOB's briefing
Reviewing a further capital return plan or higher dividend policy, alongside ongoing review of UOB's stakes across other companies
Read more at SGinvestors.io.
Above is an excerpt from a report by DBS Group Research. Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
