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Singapore's United Overseas Bank Q3 profit falls from previous quarter

By Reuters News


Overview

  • Singapore bank's Q3 net profit was down 15% quarter-on-quarter

  • Net fee income hit record S$733 mln, up 19% yr/yr

  • Trading and investment income fell to S$322 mln amid less favorable market conditions


Outlook

  • UOB did not provide specific financial guidance for upcoming quarters or full year in its press release


Result Drivers

  • WEALTH AND LENDING FEES – Record fee income was driven by strong loan-related activity and sustained wealth-management growth

  • LOAN GROWTH – Loan growth of 3% offset a 6-bps net interest-margin decline amid higher funding costs, keeping net interest income stable q/q

  • ABSENT DIVESTMENT GAINS – Q3 net profit fell 15% q/q primarily due to the absence of asset divestment gains recognised in Q2


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Net Income

S$1.25 bln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy."

  • Wall Street's median 12-month price target for United Overseas Bank Limited is S$44.80, about 10.7% above its November 3 closing price of S$40.46

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago


Reuters Recommended Reads

  • Nov 1 - China's big banks post fastest quarterly profit growth in years as margins stabilise

  • Nov 2 - Westpac CEO says buyers waiting for lower prices as housing downturn deepens


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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