Report Summary

• United Overseas Bank (UOB) is expected to report a 4Q25 net profit of S\$1.28bn, with a strong quarter-on-quarter earnings rebound driven by normalisation of credit costs, although year-on-year profit is forecast to decline due to a high base effect from the previous year.
• The report maintains a Hold rating with a target price raised to S\$40.90, reflecting lower cost of equity assumptions. Key upside risks include lower credit costs and accelerated fee income growth, while downside risks involve asset quality deterioration in ASEAN and possible further provisioning for Greater China real estate exposure.