Broker Name: CGS International
Date of Report: February 24, 2026
Excerpt from CGS International report.
Report Summary
- United Overseas Bank (UOB) reported 4Q25 PATMI of S\$1.41bn, which was 9.9% above CGS International’s forecast, driven by lower provisions and a write-back in general provisions, resulting in total credit costs declining below management guidance.
- FY26 guidance remains mostly intact except for fee income growth, which was revised to high single-digit growth (from previously high single- to double-digit); the dividend per share is expected to lower in FY26, leading to a projected yield of 4.4%.
- CGS International reiterates a Hold rating with a target price of S\$40.90, citing both upside risks (such as possible rebound in interest rates and fee income acceleration) and downside risks (including ASEAN economic weakness and asset quality concerns).
- Key financials for UOB show stable NIM, normalised credit costs, steady loan growth, and a disciplined cost-to-income ratio, positioning the bank defensively amidst economic uncertainty.
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
