UOB - RHB Research 2026-05-08: Sees Opportunities To Double Up Wealth Income

• 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.

• - Read this at SGinvestors.io -
• 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.

• - Read this at SGinvestors.io -
• 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6% y-o-y, while CASA grew 10% y-o-y (-2% q-o-q, due to temporary CASA inflows towards end-2025, which were subsequently withdrawn).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.

• Read more at SGinvestors.io.

Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2026-05-08

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