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UOB
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minichart
Member |
01-Sep-2026 08:38
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$UOB(U11.SI) United Overseas Bank Ltd (UOB) &ndash Technical Buy: Last price S$41.56. The stock has likely completed a 3-wave corrective structure, with a breakout from a falling wedge signalling a bullish continuation. Investors are advised to accumulate on pullbacks at S$41.10 or S$39.80. Stop loss is set at S$39.00. Target prices are
https://www.minichart.com.sg/2026/09/01/uob-and-singtel-get-fresh-technical-buy-calls-as-msci-singapore-index-turns-bullish/
Thank you
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Joelton
Supreme |
28-Aug-2026 14:26
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UOB prices landmark US$1.2 billion dual-tranche euro covered bond offering [SINGAPORE] UOB has priced a one-billion-euro (US$1.2 billion) dual-tranche covered bond transaction &ndash the first executed by an Asian issuer, said the bank on Thursday (Aug 27). The bonds &ndash with two-year and five-year tenors &ndash were offered under the bank&rsquo s US$15 billion Global Covered Bond Programme to capture demand from a broad range of investors while optimising maturity management for the bank. This also marked the first two-year euro covered bond issuance from an Asia-Pacific issuer since 2023. The offering generated &ldquo exceptionally strong&rdquo investor demand, reflecting strong support from high-quality institutional investors, said UOB. Peak combined order books exceeded 4.25 billion euros within four hours of launch, and the final book closed at around 3.9 billion euros, representing an oversubscription of about four times. This strong demand enabled UOB to tighten pricing from initial guidance, with the two-year tranche repriced by eight basis points and the five-year tranche by six basis points, allowing the bank to lock in &ldquo historically tight funding spreads&rdquo . Both tranches share an expected issue date of Sep 8. Payments of interest and principal are guaranteed by Glacier Eighty, backed by a portfolio of loans purchased from UOB and other assets. The bonds are expected to receive Aaa ratings from Moody&rsquo s Investors Service and AAA from Standard & Poor&rsquo s Rating Services. Two maturities The issuance is split equally across two maturities. The first tranche consists of 500 million euros in covered bonds maturing on Sep 8, 2028. These bonds carry a fixed annual coupon of 3.118 per cent payable annually in arrear. The two-year tranche was priced at mid-swaps plus seven basis points, with the pricing about five basis points inside comparable Singapore secondary market levels. The new issue premium was estimated to be negative one to two basis points. The longer-dated tranche comprises 500 million euros in covered bonds maturing on Sep 8, 2031. This five-year tranche features a fixed annual coupon of 3.342 per cent payable annually in arrear and was priced at mid-swaps plus 24 basis points, with an estimated new issue premium of zero basis point. The dual-tenor strategy also successfully captured a diverse investor base, said UOB, with the two-billion-euro two-year order book deliberately positioned to capture current preferences for shorter maturities. Bank treasuries dominated this tranche with a 56 per cent allocation, followed by asset managers at 20 per cent, central banks and official institutions at 12 per cent, and others at 12 per cent. Conversely, the 1.9-billion-euro five-year tranche appealed to traditional real money investors. Asset managers secured 41 per cent of that tranche, central banks and official institutions took 26 per cent, bank treasuries accounted for 23 per cent, and others took 10 per cent. UOB shares fell 0.4 per cent to close S$0.16 lower at S$40.95 on Wednesday. |
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Joelton
Supreme |
24-Aug-2026 09:26
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JPM upgrades UOB to neutral from underweight on valuation, negatives discounted
In a report dated Aug 23, JP Morgan has upgraded UOB from underweight to neutral, and raised its June 2027 price target, albeit to a lower level than its current trading price.
According to the report, UOB &ldquo screens cheapest amongst the three (local banks), at 11.5x price to earnings ratio (P/E), and 1.2x price to book ratio (P/B), and at a 1.2 to 1.4 standard devation above the mean on a 10 year normal distribution&rdquo .
Banking analyst Harsh Modi says the lower multiples make sense as UOB is in the process of scaling up its wealth management business &ldquo from a lower base vs DBS/ OCBC, and the bank has had asset quality-related worries over the last 12 months.&rdquo &ldquo Asset quality risks appear to have been fairly well-flagged now, with improvement in US commercial real estate (CRE), while Greater China CRE is still a lingering issue,&rdquo Modi writes. Although Modi flags that its general provisioning coverage is a tad below OCBC and DBS, coverage adjusted for collateral has risen to 306% vs 209% 12 months ago. Modi says &ldquo we do not see a likelihood of negative EPS revisions for UOB (our estimates are in-line with Street for this and next), limiting the catalyst for a correction. Accordingly, we close our underweight rating and upgrade the stock to neutral. On implied cost of equity, UOB screens cheaper vs peers at 9.5%, which also suggests that the worries on returns are close to being discounted,&rdquo the report adds. OCBC fully-valued Modi indicates that OCBC is trading at 16.6x PE and 2.1x P/B. with 12.8%, 13.1% and 13.2% core (excluding GEH) ROE estimates for 2026, 2027 and 2028 respectively. &ldquo The implied cost of equity at these numbers is 8.3%, which we believe is meaningfully lower than the expected stock returns,&rdquo the JP Morgan report states. At an implied 8.3%, OCBC&rsquo s cost of equity is lower than DBS&rsquo s. Modi points out that OCBC&rsquo s 1H2026 and 2Q2026 net profit outperformance was capital market-related, and, as was indicated in OCBC&rsquo s results presentation, on account of Great Eastern Holdings. This &ldquo suggests a lower margin of safety for OCBC. There is a possibility that OCBC may have benefitted from benchmark-related flows as well (of 17.9% for the STI and 18.6% MSCI Singapore) as select investors may have rotated part of DBS&rsquo weight to OCBC/UOB/SGX.&rdquo Interestingly, Modi also highlights that OCBC &ldquo appears to have used up a larger part of its CET1 buffer in last 12 months vs peers&rdquo referring in to OCBC&rsquo fully-phased in CET1 ratio at 14% as of June 30 vs 14.6% for DBS and 15% for UOB. The JP Morgan report believes that OCBC&rsquo s 130 basis points decline over the past 12 months was led by a 13.1% y-o-y RWA growth. &ldquo Accordingly, there is a risk that either the bank slows down RWA growth or reduces payout next year or ends up below peers on CET1. We assume 60% payout for 2026-2028, with RWA growth at 8.2% and 9.4% for 2027 and 2028. We stay underweight,&rdquo the JP Morgan report concludes. Remains neutral on DBS JP Morgan retains its positive medium-term view on DBS but keeps a neutral rating on the stock. The Aug 23 report estimates DBS&rsquo s ROE at 16.4% in 2026, 17.3% in 2027 and 17.6% in 2028, and forecasts that 2028&rsquo s EPS will be 24% above 2025&rsquo s $3.86 per share. As such, DBS&rsquo s dividend is likely to grow with EPS. &ldquo These numbers suggest that the bank has re-architected businesses (tech, processes, RoRWA focus, branding) across revenue lines to be best-in-class, leading to low volatility and high-quality earnings. The bank' s liability franchise, led by an 86% SGD CASA ratio should become meaningfully more valuable in an environment of higher rates. The diversification of wealth management net new money growth sources to newer markets should further cement the bank' s leading ROE. Yet, 35% YTD returns vs 22% for the STI, 17.8x PE and 3.0x PB suggests a lot is in the price. Hence, we recommend waiting for a better entry point,&rdquo Modi reasons. As we head into 2H2026, JP Morgan is expecting EPS revisions to stall. Higher implied interest rates for 2027 and 2028, along with robust wealth maangement and capital markets drove revisions in 1H, which are now almost fully saturated, JP Morgan believes. Its only overweight among Singapore financials is Singapore |
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Ohyonglee
Member |
19-Aug-2026 12:14
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KopiBull automatically matches announced dividend payments to your saved share quantities and arranges them into a yearly dividend ladder. KopiBull &mdash SGX Stocks, Dividends & Singapore Investor Community | ||||
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Joelton
Supreme |
19-Aug-2026 11:40
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UOB prices US$1.4 billion floating rate covered bonds due 2030
[SINGAPORE] UOB on Wednesday (Aug 19) said that it has priced £ 1 billion (US$1.4 billion) floating rate covered bonds due February 2030.
The issue date of the covered bonds is expected to be Aug 25. An application will be made to the Singapore Exchange for the listing and quotation. The covered bonds will bear interest at the compounded daily Sterling Overnight Index Average (Sonia) rate, plus 0.49 per cent per annum payable quarterly in arrear. The Sonia rate is the average of the interest rates that banks pay to borrow the pound sterling from other financial institutions and institutional investors overnight. Payments of interest and principal will be guaranteed by Glacier Eighty. The guarantee is secured by a portfolio of loans purchased by the company from the bank and other assets of the company. The covered bonds, which are issued as the 17th series under UOB&rsquo s US$15 billion global covered bond programme, are expected to be rated &ldquo Aaa&rdquo by Moody&rsquo s Investors Service and &ldquo AAA&rdquo by Standard & Poor&rsquo s Rating Services. Aside from UOB, Bank of Montreal, HSBC Singapore, RBC Europe and the Singapore branch of Standard Chartered have been appointed as joint lead managers for the covered bonds. Shares of UOB closed 0.6 per cent or S$0.25 lower at S$40.88 on Tuesday. |
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alexvar
Senior |
17-Aug-2026 13:09
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vested in UOB through Haw pAr, let' s go! | ||||
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Joelton
Supreme |
17-Aug-2026 13:06
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UOB&rsquo s digital wealth sales, transactions jump almost 50% as clients invest more online [SINGAPORE] UOB&rsquo s digital wealth sales and transactions grew close to 50 per cent year on year in the 12 months up to April, driven by a wider regional roll-out and growing customer comfort with investing online. UOB is starting to reap the benefits of expanding its digital wealth capabilities in the region, following the integration of the consumer banking businesses it acquired from Citi. The lender is also handling a growing demand for investment strategies developed by its private bank&rsquo s chief investment office (CIO), which it has made available to its broader retail customer base. Jacquelyn Tan, the lender&rsquo s head of group personal finances, told The Business Times in a recent interview that assets under management (AUM) in these CIO fund offerings grew about 60 per cent year on year in the first quarter of 2026, and surpassed S$2 billion in May. Its CIO income and growth funds are among the five most popular funds bought digitally by customers, she noted. For UOB, digital wealth encompasses customers investing and managing their portfolios through its &ldquo UOB TMRW&rdquo banking app for activities ranging from buying investment products to setting up regular investments. The bank&rsquo s wealthier customers also use these capabilities along with the recommendations they get from their wealth advisers. The bank also notes that customers are now committing larger sums as they become more comfortable investing online. The average lump-sum investment among young adults in Singapore has risen to about S$4,000 among young professionals, the figure is close to S$8,000, Tan said. Average ticket sizes for overall digital investments have grown about 20 per cent year on year, and customers making recurring investments are putting in nearly S$450 a month on average. Digital wealth to play &lsquo meaningful&rsquo role UOB is looking to digital wealth to deepen relationships with its retail customers and support its broader target of doubling wealth income by 2030. Its latest results showed continued momentum in the business. Wealth management income rose 16 per cent year on year to S$717 million in the first half of 2026 high-net-worth AUM grew 7 per cent to S$204 billion. Growth was stronger outside Singapore, with wealth income from Malaysia, Indonesia, Thailand and Vietnam rising 30 per cent over the same period. More than half the customers who are new to wealth now make their first investments digitally in the four markets where UOB offers its digital wealth capabilities. Digital adoption is not limited to younger investors. While customers aged 25 to 54 make up close to 80 per cent of those investing digitally, the number of pre-retirees almost doubled in the 12 months up to April, though this was from a smaller base. Tan said digital wealth would play a &ldquo meaningful&rdquo role in UOB&rsquo s wealth growth, both by bringing emerging-affluent customers into investing, and by enabling its advisers serving wealthier clients to focus more on advice than on transactions. Asked whether the shift towards digital investing could cannibalise UOB&rsquo s higher-end wealth businesses, she said the bank does not see the two as competing channels. Instead, it looks at customers based on their overall relationship with UOB. Those who accumulate more wealth can move into more sophisticated products and advisory services as their needs become more complex. &ldquo If a customer has sufficient AUM, needs a deeper access into a more complex wealth solution &ndash by all means, they should be served on the private banking platform,&rdquo she said. UOB&rsquo s Privilege Banking segment serves customers with investable assets of between S$350,000 and S$5 million those with more than S$5 million are served by its private bank. AI to take on more routine work Artificial intelligence has been incorporated into UOB&rsquo s push to deepen its wealth relationships, with the bank using customer activity to determine when an investment prompt may be relevant. Its app can, for instance, prompt customers to consider investing after their salary is credited, or reinvesting after having received dividend income. Tan said UOB uses transaction data and machine-learning models to better anticipate customers&rsquo needs and determine when to send out such prompts. The lender is also experimenting with generative AI to improve the productivity of its staff. It has piloted an AI sales coach for its younger employees and built a generative AI chatbot that enables front-line staff to retrieve product, process and compliance information more quickly. Generative AI is also being piloted to create client pitch books. But Tan does not expect the technology to replace wealth advisers. &ldquo I think it will probably reimagine the way we advise. However, it will not replace advisers,&rdquo she said. Instead, she envisages AI taking on more of the information gathering, preparation and routine work done by these advisers, freeing them to spend more time on client relationships and more complex financial decisions. Self-service for simpler transactions That shift mirrors the role the bank sees for digital wealth more broadly: making simpler transactions increasingly self-service, while reserving human advice for customers and decisions that require greater expertise. As the bank works towards its 2030 wealth target, Tan said that the aim is ultimately to combine the scale of digital distribution with the judgment and relationship-building of its advisers &ndash rather than have one replace the other. |
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Joelton
Supreme |
12-Aug-2026 12:32
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Citi, OCBC downgrade UOB post-Q2 results RHB upgrades on valuation [SINGAPORE] UOB&rsquo s : U11 0% second-quarter earnings may have beaten expectations, but a lowered fee income guidance and a spike in non-performing assets (NPAs) have led to Citi Research and OCBC Group Research downgrading its shares. The bank on Friday (Aug 7) reported a net profit of S$1.48 billion for Q2, beating estimates of S$1.45 billion. The bottom line was supported by strong wealth management income and a S$200 million gain from properties sold. However, the lender lowered its fee income guidance to low single-digit growth from high single-digit growth, citing headwinds such as higher card-redemption expenses and lower revenue from investment banking deals. This prompted Citi Research on Tuesday to downgrade UOB to &ldquo sell&rdquo from &ldquo neutral&rdquo , setting a target price of S$38. Analyst Tan Yong Hong noted that net interest margin (NIM) expectations need to be moderated as fixed-rate assets reprice lower. UOB shares fell 0.6 per cent on Friday, after the results. The counter was down a further 2.1 per cent at S$42.39 at midday on Tuesday. Citi&rsquo s change also reflects expected earnings per share downgrades from reduced net interest income and non-interest income after the UOB Asset Management (UOBAM) sale, alongside lower non-wealth fees, Tan said. This followed OCBC Group Research downgrading the stock to &ldquo hold&rdquo from &ldquo buy&rdquo on Friday, though it raised its fair-value estimate to S$42.35 from S$41. The research house noted that UOB&rsquo s share price is now trading close to its fair value. While wealth management was a standout performer, with income up 16 per cent year on year in the first half and assets under management hitting a record S$204 billion, the lower fee income guidance weighed on the outlook. RHB and Macquarie bullish Conversely, RHB on Tuesday upgraded UOB to &ldquo buy&rdquo from &ldquo neutral&rdquo and lifted its target price to S$46.60 from S$41.30. RHB said that despite the lender&rsquo s unexciting set of numbers and the cut to fee growth guidance, the valuation gap between UOB and its peers is becoming too wide for investors to ignore. The brokerage added that UOB is likely comfortable with its provision buffers, and said that it expects the cost-of-equity gap versus the bank&rsquo s peers to narrow. Macquarie Equity Research on Friday echoed this bullish valuation sentiment, retaining its &ldquo outperform&rdquo rating and raising its 12-month target price by 3 per cent to S$46.57. Analyst Jayden Vantarakis highlighted that UOB remains the value play in the sector, trading at a 48 per cent price-to-book discount to its domestic peer average. Asset quality was a recurring theme across all broker notes. UOB saw new NPA formation spike to S$902 million in Q2, up from S$341 million in the first quarter. About two-thirds of this new formation stemmed from a single Greater China-Hong Kong commercial real estate account, though the bank had been monitoring the client closely. While this led to a decline in some allowance coverage metrics, management has expressed that the current buffers are adequate and does not expect any further chunky NPA slippages. UOB management maintained its full-year guidance for credit costs at 25 to 30 basis points and NIM at 1.75 to 1.8 per cent. |
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gslgsl
Senior |
11-Aug-2026 09:47
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UOB now needs new CEO to boost its share prices. | ||||
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moonsun
Veteran |
08-Aug-2026 16:05
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Hopefully this will translate into more dividends.. | ||||
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Joelton
Supreme |
08-Aug-2026 15:26
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&lsquo Size in banking is not everything&rsquo : UOB pursues capital-light strategy as Q2 profit rises trims fee growth outlook [SINGAPORE] UOB signalled that it will continue pruning non-core businesses as it reshapes itself into a more capital-light, advisory-led lender, with group chief executive Wee Ee Cheong saying that the bank will focus on businesses where it has a competitive advantage. The comments came after UOB reported a 10 per cent rise in its second-quarter net profit and two days after announcing the S$555 million sale of its asset management arm to Allianz Global Investors. &ldquo Size in banking is not everything,&rdquo Wee said at the bank&rsquo s second-quarter results briefing on Friday (Aug 7). &ldquo To be a good bank, you have to be relevant.&rdquo This shift comes as wealth management becomes an increasingly important growth driver for UOB, underpinning its push towards higher-return, capital-light businesses. For the second quarter ended Jun 30, 2026, UOB posted a 10 per cent rise in net profit to S$1.48 billion amid record wealth fees. This beat the S$1.45 billion earnings forecast in a Bloomberg estimate by five analysts. Net interest income for the quarter fell 2 per cent to S$2.3 billion, reflecting low net interest margins in the prevailing rate environment. Net interest margin (NIM) was down 17 basis points to 1.74 per cent for the quarter, from 1.91 per cent in the previous corresponding period. Net fee income increased 5 per cent to S$665 million, supported by strong growth in wealth and fund management activities. Other non-interest income rose 28 per cent to S$632 million, benefiting from non-recurring gains from asset divestments. Wealth gains To accelerate wealth growth, Wee sees &ldquo significant opportunities&rdquo across its SME and business owner sectors. He noted that the bank&rsquo s competitive advantage lies in its regional wholesale banking franchise, which will &ldquo double up&rdquo to complement its private banking business. &ldquo Given our footprint, all these foreign direct investments, when they come to Singapore, they will see UOB as the most comprehensive,&rdquo he said. &ldquo When we support them in their business&hellip they will give us a piece of the wealth business.&rdquo The bank is still targeting to double its wealth fees, which was what drove its partnership with Allianz Global Investors. UOB had said that this will expand its investment solutions and open-architecture offerings for clients. The sale of such non-core assets is reviewed by the bank regularly and depends on specific opportunities instead of a broader programme in the bank, noted group chief financial officer Leong Yung Chee. Wee added: &ldquo That is also our strength &ndash a lot of other banks don&rsquo t even have non-core (assets) to sell.&rdquo It also continues to invest in talent, platform and products while expanding its North Asia presence to support regional wealth flow. Wee said he would rather focus the bank&rsquo s resources on new emerging infrastructure and the rising need to protect banking clients from scams, than investing in fund manufacturing, for example, which requires scale to grow meaningfully. &ldquo We just want to focus on what we think we can do better,&rdquo Wee said. &ldquo Hopefully, in the next few years, we will start to see UOB navigate into a different shape of bank,&rdquo Wee said. More cautious outlook Nevertheless, the bank cut fee income guidance for 2026 to low single-digit growth, from a high single-digit growth. Leong said some of its sizeable fee deals in the pipeline have been pushed into the second half of the year. Outlook for its credit card fees, which roughly account for about a third of UOB&rsquo s fee income, has also shifted. A change in spending patterns has resulted in lower interchange fees in the buckets which consumer spend on. Meanwhile, UOB is seeing higher annual retention costs as people travel more, as well as higher scheme fees. Outlook for its other businesses were unchanged. The bank is looking at low single-digit growth for loans, a full-year NIM of 1.75 to 1.8 per cent, a low single-digit increase in operating cost and total credit costs at around 25 to 30 bps. In comparison, DBS &ndash which reported Q2 results on Thursday &ndash raised its full year 2026 net profit guidance to above FY2025 levels. OCBC, which posted Q2 results on Friday, raised loan growth outlook as well. Following the results, shares of UOB fell as much as 2.2 per cent. It was down 0.5 per cent to S$43.36 as at 2.50 pm on Friday. In Q2, UOB also added S$902 million in new non-performing assets during the second quarter, due to a single real estate client in the Greater China region. Leong said the bank had been monitoring the client closely, and had taken it into account in the provisions it set aside in the third quarter of 2025. The non-performing loan ratio stood at 1.6 per cent for the quarter, unchanged from a year earlier. Human touch With artificial intelligence, Leong noted that it is no longer just a buzzword and has &ldquo become something very ingrained in the bank&rdquo . Copilot is available to more than 30,000 of its staff across the region, with more than 400,000 prompts per month. UOB is working with an external auditor to structure and model a framework by the end of the year, such that it can report its financial contributions regularly going forward. &ldquo But more important to us is the human factor,&rdquo Wee said. Wee said that younger bankers tend to be highly proficient with technology, but have &ldquo no EQ&rdquo , or emotional intelligence. &ldquo They have good IQ&hellip but they don&rsquo t have the wisdom, they don&rsquo t have the empathy, they don&rsquo t know how to cross-sell,&rdquo he noted, adding that the bank intends to hire young graduates and train existing staff to be &ldquo smarter than machines&rdquo . &ldquo Banking is a people business,&rdquo Wee added. |
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Joelton
Supreme |
08-Aug-2026 15:21
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Analysts remain guarded on outlook as UOB introduces refreshed growth drivers Analysts remain largely negative on UOB following its 1H2026 and 2Q2026 results. Citi&rsquo s banking analyst Tan Yong Hong has a neutral rating and says fee income missed expectations at +4%q-o-q and +5%y-o-y. Better wealth momentum mitigated stable other fees income, he says. &ldquo These were offset by one-off disposal gains of $200 million to drive in-line topline,&rdquo Tan adds. But he highlights the headway UOB is making on the wealth front. Wealth management fees of +11%q-o-q and +29%y-o-y was a brighter spot with AUM $204 billion +3% q-o-q and +7%y-o-y. First half net new money was at $4 billion compared to the first quarter&rsquo s net new money of $1 billion. Harsh Modi, banking analyst at JP Morgan who has an underweight rating on UOB, sees its 2Q2026 results as &ldquo weak set of results, with NII (net interest income), fee, and AQ (asset quality) trends underperforming peers in the quarter. Management guidance likewise appears weaker versus peers, with low-single-digit loan and fee growth targets for FY2026. This should drive relative underperformance,&rdquo he adds. JP Morgan&rsquo s outlook for UOB is significantly negative. As in previous quarters, UOB Group CEO Wee Ee Cheong&rsquo s comments remained conservative. He reiterated that the Asean-4, Malaysia, Thailand, Vietnam and Indonesia remains a key growth engine for the bank. In the first half of this year, these economies contributed 27% of wholesale banking income. Trade loans grew over 30% while wholesale Casa deposits increased 9% y-o-y. &ldquo Through our FDI advisory unit, we supported more than 300 cross-border companies into the region in the last six months, with projected investment totaling $5.6 billion. More than 60% of these investments are in TMT and industrial sectors,&rdquo he adds. Wee points the the Asean-4 contributing 35% of retail banking income. UOB&rsquo s wealth income rose 30% in the first half, with Malaysia up 29% y-o-y and Thailand up 48%. During the briefing, Wee highlighted key growth priorities.The first of these is to unlock the value of the retail franchise, with more than 8 million customers across Asean by deepening relationships and being the primary bank for more customers. Secondly. UOB is looking to accelerate wealth growth. &ldquo We see significant opportunities across our SME and business owner sectors, and we are investing in talent, platform, and products, while expanding our North Asia presence to grow wealth income,&rdquo Wee says. Third, the bank will continue to capture a larger share of the trade and investment flows intra-Asean and between Asean and the rest of the world. Finally, UOB plans to reposition Hong Kong for more diversified and asset light growth. &ldquo Hong Kong remains an important gateway between Greater China, Asean, and the rest of the world. Our focus is building a more balanced franchise, including private banking and global markets,&rdquo Wee says. UOB&rsquo s 2Q2026 net profit rose 10% y-o-y and 3% q-o-q to $1.478 billion, in line with Bloomberg&rsquo s estimate of $1.478 billion. For the first half of 2026, net profit rose 3% y-o-y to $2.915 billion. The analysts have focused on UOB&rsquo s new NPA formation of $902 million during the second quarter. Group CFO Leong Yung Chee points out this is the result of one real estate account in Greater China, booked in Hong Kong which for which the bank had set aside provisions in 3Q2026. &ldquo We' re confident of the provision coverage that we have put in place and our credit cost guidance of 25 to 30 basis points,&rdquo he says. UOB&rsquo s Greater China portfolio is highly collateralised and well-secured. Loan-to-values for the Greater China real estate exposure is below 50% vs its US commercial real estate exposure of below 70%. Valuations are refreshed annually to reflect current market conditions, notes Tan of Citi Research. &rdquo Management does not expect further exceptional provisioning similar to 3Q2025,&rdquo he says. On a positive note, UOB&rsquo s transitional CET1 stood at 15.4% and would be 15% on a fully-loaded post FY2025 dividend payout which took place in 2Q, Tan highlights in his report. The 15% CET1 ratio is the highest among the three banks. The bank announced a dividend of 88 cents for 1H2026 representing a 50% payout ratio. &ldquo Our share buyback program is guided by a disciplined capital management framework. We have, as I mentioned, completed about 40% which amounts to $794 million. We remain committed to delivering the $2 billion capital return plan, either through share buybacks or other means by the end of 2027,&rdquo says Leong. The 2026 outlook and guidance for loans is low single-digit growth, full-year NIM of about 1.75% to 1.8%, fee income at low single-digit growth, operating costs of low single digit increase, a target ROE of 12% to 13%, and total credit cost of 25 to 30 bps. UOB&rsquo s last done price of $43.30 translates into a dividend yield of 4.06%, and a price-to-book ratio of 1.44x. |
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neo8180
Member |
08-Aug-2026 14:40
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sigh, out of 3 banks, 1 perform worst, 1/3 and I managed to tio the worst one! | ||||
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hokpin
Supreme |
07-Aug-2026 13:47
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But now resumes already.
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Joelton
Supreme |
07-Aug-2026 10:37
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UOB Q2 profit climbs 10% to S$1.48 billion, edging past estimates [SINGAPORE] UOB&rsquo s net profit for its second quarter rose 10 per cent as net fee income rose on record wealth management fees, it said on Friday (Aug 7). Net profit for the three months ended June 30, 2026 stood at S$1.48 billion, compared with S$1.34 billion from the year-ago period. The earnings slightly beat the S$1.45 billion consensus forecast in a Bloomberg survey of five analysts. The lender declared a dividend of S$0.88 per share for the period. This is compared with the S$1.10 per share paid out in the year-ago period, which comprised an interim ordinary dividend of 85 cents and a special dividend of 25 cents. Net interest income for the quarter fell 2 per cent to S$2.3 billion, reflecting low net interest margins in the prevailing rate environment. Net interest margin was down 17 basis points (bps) to 1.74 per cent for the quarter, from 1.91 per cent in the previous corresponding period. Net fee income increased 5 per cent to S$665 million, supported by strong growth in wealth and fund management activities, while other non-interest income rose 28 per cent to S$632 million, benefiting from non-recurring gains from asset divestments. The bank&rsquo s non-performing loans (NPL) ratio was 1.6 per cent, unchanged from the same-period a year ago. The bank cut its fee income guidance for 2026 to a low single-digit growth, compared with the high single-digit fee growth it guided for during its first quarter results. Ahead of the results, shares of UOB closed 1.2 per cent up at S$43.58 on Thursday. |
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lsyiat
Veteran |
07-Aug-2026 10:06
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uob lose in the race, dbs and ocbc were up significantly but uob lagging behind. | ||||
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huattuatua
Elite |
07-Aug-2026 09:33
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Mr Wee doesnt know an old chinese adage, 没 有 对 比 就 没 有 伤 害 ， hahaha every mother n son likes to compare ya, 😎 |
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Alignment
Elite |
07-Aug-2026 09:03
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Results look good enough even without a special div. The ordinary div has gone up 4% vs last year. |
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easywin
Supreme |
07-Aug-2026 09:03
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Oh bet on wrong counter
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Checkerman
Master |
07-Aug-2026 09:02
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not positive
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