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

Excerpt from CGS International report.

Report Summary

United Overseas Bank (UOB SP)
Action: Hold (no change)
Target Price: S$38.70
Current Price: S$36.65
Call to Action: Investors should maintain their positions; the stock is expected to deliver a total return between 0% and positive 10% over the next 12 months.
Highlights:
1Q26 net profit of S$1.44bn was slightly ahead of estimates due to lower-than-expected credit costs.
UOB maintained its FY26 guidance, indicating continued well-managed credit costs and disciplined cost control.
Key upside catalyst: Lower specific provisions and accelerated growth in wealth management (AUM) driving higher net fee and commission income.
Key downside risks: Accelerated credit costs, weaker ASEAN economic outlook, and stronger NIM (Net Interest Margin) pressure resulting in a steeper decline in net interest income.
Dividend Yield forecast: 4.61% for FY26.
Major shareholders: Wee Investments Pte Ltd (8.1%), Wah Hin & Co Pte Ltd (5.3%), Vanguard Group (3.4%).
Implications: The report recommends a Hold on UOB, with a 12-month target price of S$38.70, reflecting confidence in credit cost management and cost discipline, but awaiting further clarity from analyst briefings. Investors are advised to wait for further updates and maintain positions pending new catalysts or risks.

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.cgsi.com