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UOB
(SGX:U11)
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Rating:70Outperform
Price Target:
S$48.00
▲(10.34% Upside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by solid but not flawless fundamentals: strong scale and an improving leverage profile are tempered by meaningful cash-flow volatility and some cooling in 2025 profitability/returns. Technicals add support with an established uptrend and healthy (not overbought) momentum. Valuation is a positive contributor given the moderate P/E and high dividend yield. Earnings-call takeaways are constructive (reiterated guidance, strong capital/liquidity and shareholder returns) but balanced by margin compression and a notable new NPA risk.
Positive Factors
Strong capital & liquidity
Robust CET1, LCR and NSFR provide durable loss-absorbing capacity and funding resilience. This structural strength supports conservative provisioning, sustained dividend/buyback programs, and the ability to grow loans or absorb shocks across the regional franchise over the next several quarters.
Negative Factors
NIM compression
Declining net interest margin reduces core earnings power for a loan-centric bank. Even with loan growth, persistent margin pressure structurally compresses net interest income and places more reliance on fee growth and cost control to sustain returns over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong capital & liquidity
Robust CET1, LCR and NSFR provide durable loss-absorbing capacity and funding resilience. This structural strength supports conservative provisioning, sustained dividend/buyback programs, and the ability to grow loans or absorb shocks across the regional franchise over the next several quarters.
Read all positive factors
UOB (U11) vs. iShares MSCI Singapore ETF (EWS)
Market Cap
S$67.46B
Dividend Yield3.92%
Average Volume (3M)3.33M
Price to Earnings (P/E)10.3
Beta (1Y)1.22
Revenue Growth-10.35%
EPS Growth-19.23%
CountrySG
Employees31,222
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.95
Shares Outstanding1,663,579,500
10 Day Avg. Volume2,818,957
30 Day Avg. Volume3,331,667
Financial Highlights & Ratios
PEG Ratio-0.57
Price to Book (P/B)1.23
Price to Sales (P/S)2.28
P/FCF Ratio13.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
S$40.22Price Target Upside-7.54% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering5
EPS Forecast (FY)3.38
Revenue Forecast (FY)S$14.15B
UOB Business Overview & Revenue Model
Company Description
United Overseas Bank Limited, along with its subsidiaries, functions as a diversified financial institution delivering a comprehensive suite of banking solutions. Its operations are structured across three primary segments: Group Retail, Group Who...
How the Company Makes Money
UOB primarily makes money by earning interest and fees from providing banking and financial services. The main revenue streams typically include: (1) Net interest income: UOB takes deposits and other funding and uses them to extend loans and credi...
UOB Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture: solid quarterly profit growth, strong wealth and transaction banking momentum, resilient capital and liquidity metrics, and active shareholder returns. These positives are tempered by margin compression, fee moderation, a notable new NPA linked to a Greater China real estate exposure, and near-term expense pressures from strategic investments. Management reiterated disciplined capital and provisioning frameworks and provided conservative guidance for loans and fees while highlighting initiatives (Allianz partnership, AI adoption, regional expansion) to drive medium-term growth.Positive Updates
Strong Quarterly and Half-Year Profit
Net profit after tax of $1.5 billion in Q2, up 10% year-on-year; first half net profit of $2.9 billion, up 3% year-on-year. Q2 ROE of 11.8%.
Negative Updates
Net Interest Margin Compression
Net interest margin fell from 1.82% in Q1 to 1.74% in Q2 and was 1.71% by end-July; net interest income declined ~3% despite asset growth, reflecting pressure from a lower-rate environment.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly and Half-Year Profit
Net profit after tax of $1.5 billion in Q2, up 10% year-on-year; first half net profit of $2.9 billion, up 3% year-on-year. Q2 ROE of 11.8%.
Read all positive updates
Company Guidance
Management reiterated 2026 guidance for low‑single‑digit loan growth; a full‑year NIM of about 1.75–1.80%; fee income growth at low single digits; operating expenses rising low single digits; and total credit cost of 25–30 bps. This outlook is supported by current results and metrics: Q2 net profit $1.5bn (H1 $2.9bn) and Q2 ROE 11.8%; NIM trending from 1.82% (Q1) to 1.74% (Q2) and ~1.71% end‑July; gross loans +8% YoY, customer loans +5% YoY, trade loans +30–33% and wholesale CASA +9% YoY; wealth invested AUM +15% and wealth income +16% YoY (ASEAN‑4 +30%) with $4bn net new money H1; asset quality NPA ratio 1.6% with NPA coverage 88% (306% incl. collateral) and total credit cost ~27–28 bps YTD; liquidity and capital metrics include LCR 159%, NSFR 114% and CET1 ~15.4% (15.0% fully loaded); interim dividend $0.88/sh (50% payout) and $2bn buyback program 40% complete ($794m).UOB Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
52
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.15B | 26.10B | 27.87B | 26.50B | 16.10B | 9.13B |
| Gross Profit | 12.86B | 12.74B | 13.36B | 13.01B | 10.97B | 9.13B |
| EBITDA | 6.86B | 6.41B | 21.38B | 20.02B | 10.84B | 7.22B |
| Net Income | 4.77B | 4.68B | 6.04B | 5.71B | 4.57B | 4.08B |
Balance Sheet | ||||||
| Total Assets | 590.22B | 572.06B | 537.66B | 523.52B | 504.26B | 459.32B |
| Cash, Cash Equivalents and Short-Term Investments | 38.41B | 74.25B | 76.01B | 87.44B | 78.67B | 69.88B |
| Total Debt | 79.07B | 76.18B | 64.13B | 71.66B | 68.16B | 52.17B |
| Total Liabilities | 540.47B | 520.57B | 487.71B | 477.05B | 463.43B | 418.84B |
| Stockholders Equity | 49.50B | 48.50B | 49.73B | 46.23B | 43.37B | 42.63B |
Cash Flow | ||||||
| Free Cash Flow | 1.90B | 4.39B | -15.72B | 5.60B | 5.36B | 4.11B |
| Operating Cash Flow | 2.86B | 5.66B | -14.85B | 6.47B | 6.06B | 4.66B |
| Investing Cash Flow | -33.93B | -1.15B | -771.00M | -645.00M | -3.71B | -440.00M |
| Financing Cash Flow | 44.69B | -1.83B | 1.13B | 19.27B | 34.30B | 32.63B |
UOB Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | S$139.09B | 10.35 | 22.16% | 4.76% | -2.86% | 7.77% | |
75 Outperform | S$215.17B | 19.19 | 16.23% | 4.22% | -5.30% | -0.44% | |
70 Outperform | S$67.46B | 10.27 | 9.73% | 6.85% | -10.35% | -19.23% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | S$335.90B | 7.41 | 8.19% | 5.05% | ― | ― |
* Financial Sector Average
SG:U11
UOB
40.56
6.87
20.39%
SG:D05
DBS Group Holdings
76.00
27.99
58.29%
SG:O39
OCBC
30.94
14.75
91.07%
SG:HBND
Bank of China Ltd UnSp Singapore Depositary Receipt Repr 1 Sh
0.88
0.19
26.80%
SG:HSHD
HSBC Holdings PLC UnSp Singapore Depositary Receipt Repr 1/5 Sh
5.25
2.05
64.11%
SG:IBKD
PT Bank Central Asia Tbk Shs UnSp Singapore Depositary Receipt Repr 2/1 Sh
0.91
-0.20
-18.10%
UOB Corporate Events
UOB Lifts US Commercial Paper Programme Limit to US$25 Billion
Aug 8, 2026
United Overseas Bank has updated its US Commercial Paper Programme and raised the maximum aggregate principal amount of notes that can be issued from US$15 billion to US$25 billion. The unsecured notes issued under this programme will rank pari pa...
UOB to Sell Asset Management Arm to Allianz and Seal 10-Year Regional Fund Partnership
Aug 5, 2026
United Overseas Bank has agreed to sell its entire stake in UOB Asset Management to Allianz Global Investors for about S$555 million in cash, covering operations across eight Asian markets including Singapore, Japan and several Southeast Asian eco...
UOB reshapes board governance and launches technology committee
Jun 24, 2026
United Overseas Bank is establishing a new Board Technology Committee from 1 July 2026 to steer its technology and digital strategy while overseeing technology risk, operational resilience and governance. The move underscores the bank’s emph...
UOB leans on resilient core franchise to sustain steady growth in early 2026
Jun 22, 2026
UOB reported a steady performance in the first quarter of 2026, underpinned by its resilient core franchise and diversified regional footprint across ASEAN and Greater China. The bank’s balance sheet remained robust, with gross loans rising ...
UOB AGM underscores resilient 2025 earnings, ASEAN growth push and capital return commitment
May 13, 2026
United Overseas Bank reported a resilient performance for 2025, delivering operating profit of $7.7 billion despite a lower interest rate environment, supported by diversified income, record fee and customer-related treasury contributions, and str...
UOB posts steady first-quarter profit as resilient core franchise offsets rate pressures
May 12, 2026
United Overseas Bank reported a steady first-quarter performance, with net profit of $1.4 billion supported by resilient retail, wholesale and markets franchises despite lower benchmark rates and market volatility. Net interest margin held at 1.82...
UOB underscores resilient first-quarter performance and strong capital buffer
May 12, 2026
UOB reported steady performance in the first quarter of 2026, underpinned by disciplined balance sheet management and a resilient core franchise across its regional network. Customer loans rose 4% year-on-year to SGD354 billion, while customer dep...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.