For now, we stay NEUTRAL on UOB, as we believe its valuation is decent and fairly reflects asset quality risks and the lower provision coverage level vs the sector.
UOB maintains its 2026 guidance and expects fee growth to pick up ahead. This is backed by a pipeline of initiatives to grow the wealth business, with a target to double its wealth income by 2030.
1Q26 results in line.
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The reported net profit of S$1.4bn (+2% q-o-q, -4% y-o-y) made up ~ 25.5% of our and Street FY26F PATMI. 1Q26 reported ROE was 11.5% (2025: 9.8%), while the fully loaded CET-1 stood at 15.2% (2025: 14.9%).
Results highlights.
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high base effect.
1Q26 net new money was S$1bn, while AUM stood at S$198bn (+5% y-o-y, -2% q-o-q). Both opex and credit cost, though, were well within guidance.
Loans and deposits increased by 4% y-o-y and 6% y-o-y, while CASA grew 10% y-o-y (-2% q-o-q, due to temporary CASA inflows towards end-2025, which were subsequently withdrawn).
Its balance sheet remains liquid, with the LDR at 81.9% (4Q25: 81.7%; 1Q25: 84%).
Non-performing assets (NPAs) decreased by 3% q-o-q (-2% y-o-y) as – despite an uptick from a well-collateralised real estate name in Greater China – ths was more than offset by recoveries and write-offs. Generally, UOB said NPAs were stable across geographies and segments. NPA coverage was slightly higher, at 92% (4Q25: 90%, 1Q25: 83%).
Briefing highlights.
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Above is an excerpt from a report by RHB Securities Research. Clients of RHB may be the first to access the full PDF report @ https://www.rhbtradesmart.com/.
