UOB (SGX:U11)'s 1Q26 earnings of S$1,437mil were within our estimates, at 26% of our FY26e forecast. NII fell 4% y-o-y to S$2,324mil as 4% loan growth partially offset 18bps NIM compression to 1.82%. NIM held up better q-o-q (-2bps) as funding cost management (+15bps) largely offset asset repricing drag (-14bps) from lower SORA and HIBOR.
- Read this at SGinvestors.io -
CET1 strengthened to 15.3%. Management maintained FY26e guidance (NIM at 1.75-1.80%, low-single-digit loan growth, credit costs around 25-30bps, and high-single digit fee income growth) and reaffirmed its ambition to double wealth income by 2030 (off a 2025 base).
The Positives
NIM resilience on funding cost discipline.
- Read this at SGinvestors.io -
UOB’s house view is for one more Fed cut and a limited downside in SORA. We expect FY26e NIM to come in at the upper end of guidance, providing a tailwind for NII and PATMI.
Cost discipline maintained; CIR improved q-o-q.
Read more at SGinvestors.io.
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