Broker: CGS International
Date of Report: April 16, 2026
Excerpt from CGS International report.
Report Summary: United Overseas Bank (UOB SP)
- Action: Hold (no change)
- Target Price: S\$38.70 (lowered from S\$40.90)
- Current Price: S\$37.59
- Key Idea: UOB faces continued net interest margin (NIM) compression and normalisation of credit costs. The bank’s earnings are pressured by softer non-interest income growth and higher provisions, but share buybacks partially mitigate EPS declines.
- FY26F Net Profit Guidance: S\$1.4bn, down 8% year-on-year and 3% quarter-on-quarter.
- Risk Factors: Upside from lower credit costs and stronger fee income, especially in wealth management. Downside from weaker ASEAN outlook, faster asset quality deterioration, and steeper NIM decline.
- Ticker: UOB SP
- Implication: Investors should remain cautious. The report advises holding UOB shares given margin pressures and macro uncertainties, with limited upside at current levels.
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
