Broker: CGS International
Date of Report: May 7, 2026

Excerpt from CGS International report.

Report Summary

• Stock Focus: United Overseas Bank (UOB SP)
• Action: Hold (No change)
• Target Price: S\$38.70 (Unchanged)
• Current Price: S\$36.65
• Key Idea: UOB’s 1Q26 net profit was ahead of expectations primarily due to lower-than-expected credit costs. The FY26 outlook remains unchanged and management continues to guide for well-managed credit costs (25-30bp), low single-digit loan and cost growth, high single-digit fee growth, and NIM of 1.75-1.80%.
• Highlights:
  • Net profit for 1Q26 was S\$1.44bn, slightly above estimates.
  • Net interest income declined but was offset by growth in interest-bearing assets and controlled costs.
  • Operating expenses were kept stable; IT costs fell while staff costs rose on bonus accruals.
  • Key upside: Lower specific provisions and faster growth in wealth management fees.
  • Downside risks: Higher credit costs, weaker ASEAN economic outlook, and pressure on net interest margins.
• Ticker: UOB SP

above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com