United Overseas Bank Is Solid, But Dark Clouds Are Keeping Us On Hold
Source: SeekingAlpha
2025-04-09 13:06:43 ET
Summary
- UOB's FY 2024 net profit grew by 6% to S$6 billion, with a core net profit of S$6.2 billion, reflecting strong financial performance.
- Despite economic uncertainties, UOB maintains a healthy NIM of 2.09% and a stable Non-Performing Loan ratio of 1.5%.
- UOB commits to a 50% dividend payout ratio and plans a S$2 billion share buyback by 2027, enhancing shareholder value.
- Given market uncertainties, we hold on to UOVEF, awaiting clearer economic conditions before turning bullish on Singapore's major banks.
UOB logo (UOB)
Investment Thesis
When we last covered the Singapore-based DBS Bank after their FY 2024 results came out, some here in SA asked if we could also cover United Overseas Bank ( UOVEF ) ( UOVEY ) as a comparison and share our thoughts on this bank.
We have not covered UOB since September 2023. At that time, we had a Hold on the bank as we saw uncertainties around NIM peaking and concerns about fallout from a sputtering economy in China....
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United Overseas Bank Is Solid, But Dark Clouds Are Keeping Us On Hold
United Overseas Bank Ltd.
NASDAQ: UOVEF
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