UOB (U11) AI Stock Analysis

• Market Cap: $58.45B
• Dividend Yield: 5.59%
• Average Volume (3M): 4.29M
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.12
• Revenue Growth: 5.68%
• EPS Growth: 5.92%
• Country: SG
• Employees: 32,071
• Sector: Financial
• Sector Strength: 83
• Industry: Banks - Regional
• EPS (TTM): 3.61
• Shares Outstanding: 1,684,873,300
• 10 Day Avg. Volume: 3,108,870
• 30 Day Avg. Volume: 4,285,195
• PEG Ratio: 1.66
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $37.94
• Price Target Upside: 9.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

UOB's strong financial performance, particularly in income growth and balance sheet stability, is offset by significant cash flow issues that pose risks to liquidity. Technical indicators suggest a lack of momentum, which is concerning. However, the stock's attractive valuation with a low P/E ratio and high dividend yield supports its investment appeal.

Positive Factors

ASEAN expansion

UOB's acquisition of Citigroup's consumer businesses in Indonesia, Malaysia, Thailand, and Vietnam allows it to accelerate, scale up, and deepen its ASEAN franchise.

Capital management

A SGD3bn package to return capital over 3 years, including a SGD0.50 special dividend and a SGD2bn share buyback, demonstrates active capital management.

Financial performance

Non-interest income jumped 34% year-over-year, driven by record fee income and exceptional trading and liquidity performance.

Negative Factors

Asset quality risks

Higher-than-expected non-performing loans, high inflationary pressure, and recessionary risks could pose risks to earnings.

Fed policy impact

Faster-than-expected Fed cuts also pose downside risks to earnings estimates.

Operational challenges

Higher specific allowance due to Citi Thailand operational issues, which is expected to normalize in the next two quarters.

UOB Business Overview & Revenue Model

Company Description

United Overseas Bank Limited (UOB) is a leading bank in Asia, headquartered in Singapore. It operates through a network of branches and offices across Southeast Asia, Greater China, and beyond. UOB provides a comprehensive range of financial services including personal and corporate banking, investment banking, wealth management, insurance, and asset management. The bank serves both individual and corporate clients, offering products such as loans, credit cards, and investment solutions tailored to meet diverse financial needs.

How the Company Makes Money

UOB generates revenue primarily through interest income from loans and advances, which is the largest contributor to its earnings. The bank also earns from fees and commissions related to its various financial services, including wealth management, investment banking, and transaction services. Additionally, UOB makes money through trading and investment income, leveraging its financial expertise and market presence. The bank benefits from strategic partnerships and collaborations that enhance its product offerings and market reach, contributing to its profitability. Moreover, UOB's strong regional presence in growing Asian markets provides opportunities for growth and expansion, which are crucial for sustaining its revenue streams.

UOB Financial Statement Overview

Summary

UOB exhibits strong profitability and growth, with a notable revenue increase and solid net profit margin. The balance sheet is stable with low leverage. However, cash flow challenges are concerning, especially the significant decline in free cash flow, raising liquidity management issues.

Income Statement

UOB has demonstrated a strong revenue growth trend with a 9.77% increase from 2023 to 2024. Net profit margin is solid at 42.33% for 2024, and there is a consistent net income growth. However, EBIT and EBITDA margins are not available for 2024, which limits the assessment of operational efficiency. Overall, the income statement reflects robust profitability and growth.

Balance Sheet

The balance sheet shows a strong equity position with a stockholders' equity ratio of 9.25% in 2024, indicating a stable financial foundation. The debt-to-equity ratio is effectively zero due to the absence of total debt in 2024, minimizing financial risk. However, a decline in cash and short-term investments suggests a potential liquidity concern. Overall, the balance sheet is strong with low leverage but potential liquidity risks.

Cash Flow

UOB experienced a significant decrease in free cash flow from positive in 2023 to a negative free cash flow of -15.72 billion in 2024. The operating cash flow to net income ratio is negative, indicating issues with cash generation relative to net income. The decline in free cash flow is concerning, reflecting potential challenges in cash management and liquidity.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
14.28B	13.01B	16.54B	11.92B	13.07B
	Gross Profit
14.28B	13.93B	16.54B	11.92B	13.07B
	EBIT
0.00	9.10B	-86.00M	-84.00M	-106.00M
	EBITDA
0.00	7.48B	0.00	0.00	0.00
	Net Income Common Stockholders
6.04B	5.71B	4.57B	4.08B	2.92B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
76.01B	87.44B	-49.42B	-36.56B	-36.80B
	Total Assets
537.66B	523.52B	504.26B	459.32B	431.81B
	Total Debt
0.00	37.18B	68.16B	52.17B	48.15B
	Net Debt
-76.01B	-50.26B	-10.51B	-17.71B	-23.49B
	Total Liabilities
487.71B	477.05B	463.43B	418.84B	393.06B
	Stockholders Equity
49.73B	46.23B	40.59B	40.26B	38.52B
Cash Flow		Free Cash Flow
-15.72B	9.89B	5.36B	4.11B	5.44B
	Operating Cash Flow
-14.85B	6.47B	6.06B	4.66B	6.00B
	Investing Cash Flow
-771.00M	-645.00M	-17.08B	-36.95B	-11.31B
	Financing Cash Flow
1.13B	-7.69B	34.30B	32.63B	16.61B

UOB Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 34.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:U11, the sentiment is Negative. The current price of 34.49 is above the 20-day moving average (MA) of 33.55, below the 50-day MA of 35.25, and above the 200-day MA of 33.59, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 50.00 is Neutral, neither overbought nor oversold. The STOCH value of 37.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SG:U11.

UOB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
D05	78 Outperform	$122.01B	10.88	17.99%	5.17%	13.03%	12.01%
O39	73 Outperform	$72.98B	9.68	13.78%	5.15%	10.17%	8.01%
U96	70 Outperform	$11.71B	11.50	20.60%	4.38%	-8.88%	8.31%
U11	69 Neutral	$58.45B	9.83	13.43%	5.59%	5.68%	5.92%
C09	66 Neutral	$4.43B	22.98	2.21%	1.56%	-33.84%	-36.71%
Sector *	64 Neutral	$12.51B	9.81	7.92%	16985.69%	12.67%	-5.98%
F34	62 Neutral	$19.23B	12.26	5.84%	5.21%	-0.24%	-23.64%

UOB Corporate Events

UOB Announces New Audit Committee Chairman

United Overseas Bank Limited (UOB) announced a change in the leadership of its Audit Committee, effective 1 July 2025. Mr. Steven Phan Swee Kim will step down as Chairman but remain a member, while Mr. Ong Chong Tee, a member since September 2024, will assume the role of Chairman. This change is part of UOB’s ongoing efforts to strengthen its governance and oversight functions, potentially impacting its operational efficiency and stakeholder confidence.

UOB Achieves Record Earnings with Strong ASEAN Growth

United Overseas Bank Limited (UOB) has reported record earnings, highlighting significant franchise growth across the ASEAN region. This development underscores UOB’s robust market positioning and potential for continued expansion, which could have positive implications for stakeholders and strengthen its competitive edge in the financial industry.

UOB Prices New Senior Notes to Bolster Financial Flexibility

United Overseas Bank Limited has announced the pricing of its new issuance of senior notes under its US$30 billion Global Medium Term Note Programme. The issuance includes US$800 million 4.401% Senior Notes due 2028, US$900 million Senior Floating Rate Notes due 2028, and US$300 million Senior Floating Rate Notes due 2030. The notes are managed by a consortium of banks, including UOB itself, and are intended to strengthen the company’s financial position and support its strategic initiatives. This move is expected to enhance UOB’s liquidity and provide more flexibility in its financial operations, potentially impacting its competitive stance in the financial industry.

UOB Announces Grant of 2.47 Million Restricted Shares

UOB has announced the grant of 2,470,100 Restricted Shares under its Share Plan as of March 15, 2025. These shares, which are restricted by time until they vest, are part of UOB’s strategy to incentivize and retain key personnel, potentially impacting the company’s operational dynamics and stakeholder interests.

UOB’s Sydney Branch to Issue A$2 Billion in Senior Unsecured Notes

United Overseas Bank Limited’s Sydney Branch is set to issue A$2 billion in Floating Rate Senior Unsecured Notes due 2028 under its US$30 billion Global Medium Term Note Programme. This strategic move, managed by a consortium of leading banks, aims to enhance UOB’s market presence and financial flexibility, attracting investors with the notes’ strong credit ratings of Aa1 by Moody’s, and AA- by both Standard & Poor’s and Fitch Ratings.