Education
About Us
Working with TipRanks
Follow Us
United Overseas Bank (UOVEY)
OTHER OTC:UOVEY
Top Page
United Overseas Bank
(OTC:UOVEY)
Select Model
Select Model
Rating:67Neutral
Price Target:
$63.00
â–²(20.46% Upside)
Action:DowngradedDate:03/01/26
The score is driven primarily by solid fundamentals and earnings-call support (strong capital/liquidity and shareholder returns), tempered by cash-flow inconsistency and margin volatility. Valuation is supportive (moderate P/E and high dividend yield), while technical signals are weaker in the near term.
Positive Factors
Regional franchise and diversified business model
A deep, multi-segment Southeast Asian franchise provides durable deposit and fee pools across retail, SME and corporate channels. This geographic and customer diversification supports steady loan demand, cross-sell of wealth and transaction services, and resilience to single-market shocks.
Improving leverage and stable ROE
Meaningful de-leveraging and steady returns on equity increase balance-sheet resilience and capital flexibility. Lower leverage reduces funding and solvency risk, supporting sustainable lending growth and capacity to absorb credit cycles while preserving shareholder distributions over the medium term.
Consistent revenue and net income growth
Sustained top-line and net income expansion with consistently healthy net margins signal a competitive lending and fee-generating franchise. This trend points to durable earnings power from interest spreads, transaction volumes and fees, supporting reinvestment and shareholder returns across business cycles.
Negative Factors
Volatile and negative cash flow history
Repeated swings to negative operating and free cash flow reduce confidence in earnings quality and internal funding. Over time this can limit capital allocation flexibility, constrain dividends or buybacks, and increase reliance on external funding precisely when markets tighten, raising structural risk.
Income statement data inconsistencies
Accounting or classification noise undermines visibility into underlying profitability and trend reliability. For investors and management, inconsistent margin metrics complicate forecasting, risk calibration and capital planning, increasing the chance of mispriced credit or strategic missteps over the medium term.
Sizable absolute debt despite improvement
Although leverage has declined, a large absolute debt stock leaves the bank exposed to funding-cost shifts and cyclical credit stress. In adverse macro or liquidity scenarios this can constrain lending, force costly refinancing, or pressure capital ratios, limiting strategic maneuverability over several quarters.
United Overseas Bank (UOVEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$47.99B
Dividend Yield6.44%
Average Volume (3M)13.41K
Price to Earnings (P/E)12.9
Beta (1Y)0.39
Revenue Growth1.01%
EPS Growth6.82%
CountryUS
Employees32,071
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.31
Shares Outstanding833,116,600
10 Day Avg. Volume8,908
30 Day Avg. Volume13,408
Financial Highlights & Ratios
PEG Ratio-0.54
Price to Book (P/B)1.16
Price to Sales (P/S)2.31
P/FCF Ratio13.75
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue1.99
Enterprise Value/Gross Profit3.09
Enterprise Value/Ebitda12.97
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)5.33
Revenue Forecast (FY)$11.20B
United Overseas Bank Business Overview & Revenue Model
Company DescriptionUnited Overseas Bank Limited, together with its subsidiaries, provides banking products and services. It operates through three segments: Group Retail, Group Wholesale Banking, and Global Markets. The company offers loan products, including overdraft, cash credit, short term, and long-term loans. It also provides buyers credit, structured trade finance, SGD bonds, loan syndication, and M&A services. In addition, the company offers forex, documentary collection, credit, bank guarantee, export and import finance services. Further, the company provides inward and outward remittances, FX– spot and forward, current account, and time deposit services. Additionally, the company offers letter of credit advising and negotiation/discounting services; and import and export services comprising of inward and outward bill collection services, and documents against acceptance and payment. Furthermore, the company provides private, commercial, corporate, and investment banking services. It also offers corporate finance, treasury, future broking, asset management, venture capital management, insurance, and stockbroking services; engages in capital market, credit card, and private residential home loan businesses; and loans to small and medium enterprises. The company operates approximately 500 branches and offices in Singapore, Malaysia, Indonesia, Thailand, China, and internationally. United Overseas Bank Limited was incorporated in 1935 and is headquartered in Singapore.
How the Company Makes MoneyUnited Overseas Bank (UOVEY) generates revenue through several key streams. The primary source of income is interest income from loans and advances, which includes personal loans, mortgages, and corporate loans. Non-interest income is another significant revenue stream, derived from service fees, transaction charges, and investment banking services. In addition, UOVEY earns revenue from trading and investment activities within its global markets division. The bank also benefits from strategic partnerships and collaborations that enhance its service offerings and customer reach. Overall, UOVEY's earnings are bolstered by its diversified financial services, strong regional presence, and focus on innovation and customer-centric banking solutions.
United Overseas Bank Earnings Call Summary
Earnings Call Date:Feb 23, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive but cautious picture: the bank delivered resilient earnings with several clear strengths — record fee income (+10% YoY), strong wealth and digital momentum (AUM $201bn, digital sales +144%), robust trade and global markets growth (+23%/+23%) and strong capital/liquidity metrics (CET1 15.1%, LCR 147%). Management proactively increased provisions for identified hotspots (Greater China and U.S.), which supported asset-quality buffers and allowed NPLs to fall to 1.5% and Q4 credit cost to normalize at 19 bps. Offsetting these positives are pressure on net interest income and margins (NII ~-3% YoY; NIM in the low 1.8% area), elevated credit cost in hotspot markets and a more conservative 2026 growth/fee guidance. On balance, achievements, defenses and capital returns materially outweigh the challenges, though the tone is cautious given macro and sector-specific risks.Q4-2025 Updates
Positive Updates
Resilient Operating Profit
Full-year 2025 operating profit of $7.7 billion (4% down YoY) demonstrating resilience despite a softer rate environment.
Solid Net Profit
Net profit for FY2025 of $4.7 billion.
Record Fee Income and Fee Growth
Full-year fee income hit a record high, growing ~10% year-on-year, providing diversification as NII faced pressure.
Wealth and Digital Momentum
Wealth AUM rose to $201 billion; digital wealth sales via TMRW grew ~144% YoY (from $1.57bn to $3.84bn); net new money positive and wealth income grew 14% YoY.
Trade and Global Markets Strength
Trade volumes rose from $36bn (2024) to $45bn (2025), +23% YoY; trade loan component (~13% of loans) grew ~26% YoY; global markets grew ~23% YoY and customer treasury income hit record highs.
Improving Retail Metrics & Deposits
Retail card billings up 6% YoY; retail CASA up 12%; overall CASA ratio ~58.4% (retail 57%, wholesale 60%), supporting funding/margin management.
Strong Capital and Liquidity
CET1 ratio at 15.1% (fully diluted Basel IV ~14.9%); LCR 147% and NSFR 116%, providing capacity for capital returns and risk buffers.
Shareholder Returns and Capital Return Progress
Full-year dividend $1.56 per share (final $0.71); special dividend $0.50/share paid in 2025; $3bn capital return plan >50% executed (including $1bn special dividend and share buybacks).
Asset Quality Recovery in Q4
NPL ratio improved to 1.5%; Q4 total credit cost at 19 bps; NPA formation reduced from ~$800m in Q3 to just under ~$600m in Q4 after proactive provisioning.
Negative Updates
Net Interest Income and Margin Pressure
Net interest income declined (~3% YoY) as benchmark rates eased; full-year NIM 1.89% with Q4 at 1.84% and exit NIM end-Jan at 1.82%; guidance for 2026 NIM 1.75%-1.80% signals continued margin pressure.
Operating Profit Down and Income Compression
Operating profit down 4% YoY and some income lines below prior-year exceptional levels (e.g., trading & investment income slightly below ~$1.6bn).
Elevated Credit Hotspots — Greater China and U.S.
Greater China credit cost rose from ~40 bps to 72 bps YoY; U.S. credit cost remains elevated (from ~173 bps to 110 bps) with commercial real estate identified as the primary problem area in those markets.
Preemptive Provisioning Impact
A preemptive provision top-up of $615 million recognized in Q3 increased buffers but weighed on earlier quarter metrics; specific credit cost remained material (specific cost cited at 26 bps in Q4).
Wholesale Bank Profit Pressure
Wholesale banking profit before tax declined due to lower rates and keen competition despite transaction bank and trade strength.
Guidance and Growth Moderation
Management revised fee income growth guidance for 2026 down to high single digits (from prior double-digit expectation); loan growth guidance cautious at low to low-mid single digits.
One-off Costs and Country-Specific Issues
One-time loyalty rewards alignment in Thailand reduced net cards income in the year (net cards income 1% vs gross 8%); exposures in markets like Indonesia/Thailand require selective management despite low portfolio percentages.
Residual Uncertainty from Geopolitics and Tariffs
Geopolitical tensions, supply-chain realignment and tariff volatility create ongoing macro uncertainty that could dampen loan growth and client activity.
Company Guidance
Management guided for 2026 to low single‑digit loan growth, a full‑year NIM of 1.75–1.80% (exit NIM ~1.82% at end‑January), high‑single‑digit fee income growth, low‑single‑digit operating cost growth, and total credit cost of 25–30 basis points. They also reiterated strong balance‑sheet metrics (CET1 15.1%; fully diluted Basel‑IV ~14.9%), funding and liquidity cushions (CASA ~58.4–58.5%, LCR 147%, NSFR 116%), a 50% core payout ratio (final dividend $0.71, FY dividend $1.56), and an ongoing $3bn capital return plan (>$1bn in special dividends and $2bn of buybacks, with >50% executed and one‑third of buybacks completed).United Overseas Bank Financial Statement Overview
Summary
Strong revenue growth in 2025 and a reasonably supported balance sheet with moderate leverage, but profitability is less stable (net margin stepped down sharply vs. 2023–2024) and cash flows have been highly volatile with multiple years of materially negative operating/free cash flow despite a rebound in 2025.Income Statement
Revenue expanded sharply in 2025 (up ~80% vs. 2024), showing strong top-line momentum. Profitability remains solid with a ~18% net margin in 2025, but it stepped down meaningfully from the very high ~42–44% net margins seen in 2023–2024, indicating weaker conversion of revenue into earnings. Operating profitability is mixed across years, and the sharp year-to-year margin volatility lowers confidence in the stability of earnings quality.78
Positive
Balance Sheet
The balance sheet appears reasonably supported by a sizeable equity base (equity of ~51.2B vs. debt of ~45.0B in 2025), with leverage moderate for the period (debt-to-equity ~0.88 in 2025) and improved versus the more leveraged 2020 level (~1.18). Total assets grew steadily over time, supporting scale. A key gap is that return on equity is reported as 0.0 in 2025 (after ~12% in 2023–2024), which creates uncertainty around current-year capital efficiency based on the provided data.72
Positive
Cash Flow
Cash generation is the weakest area due to large swings: operating cash flow was strongly positive in 2025 (~5.6B) and 2022 (~10.1B) but deeply negative in 2021–2024, including ~-14.8B in 2024 and ~-16.2B in 2023. Free cash flow also flipped from sizable negatives in 2021–2024 to a strong positive in 2025 (~4.3B), but the reported free-cash-flow growth in 2025 is sharply negative, highlighting volatility. While 2025 free cash flow covers a meaningful portion of net income (~0.78x), the multi-year inconsistency raises execution and predictability risk.44
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 25.69B | 14.28B | 13.01B | 10.97B | 9.13B |
| Gross Profit | 12.54B | 14.28B | 13.01B | 10.97B | 9.13B |
| EBITDA | 6.30B | 0.00 | 0.00 | 6.32B | 5.43B |
| Net Income | 4.61B | 6.04B | 5.71B | 4.57B | 4.08B |
Balance Sheet | |||||
| Total Assets | 572.06B | 537.66B | 523.52B | 504.26B | 459.32B |
| Cash, Cash Equivalents and Short-Term Investments | 74.25B | 76.01B | 87.44B | 78.67B | 69.88B |
| Total Debt | 44.99B | 24.97B | 23.49B | 41.63B | 35.21B |
| Total Liabilities | 520.57B | 487.71B | 477.05B | 460.65B | 416.46B |
| Stockholders Equity | 51.25B | 49.73B | 46.23B | 43.37B | 42.63B |
Cash Flow | |||||
| Free Cash Flow | 4.32B | -15.72B | -17.06B | 9.40B | -3.36B |
| Operating Cash Flow | 5.57B | -14.85B | -16.19B | 10.10B | -2.81B |
| Investing Cash Flow | -21.10B | -771.00M | -645.00M | -3.71B | -440.00M |
| Financing Cash Flow | 29.17B | 1.13B | 19.27B | 5.74B | 3.02B |
United Overseas Bank Technical Analysis
Positive
52.30
Price Trends
58.66
Negative
55.94
Positive
55.17
Positive
Market Momentum
-0.54
Negative
51.93
Neutral
94.90
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UOVEY, the sentiment is Positive. The current price of 52.3 is below the 20-day moving average (MA) of 57.74, below the 50-day MA of 58.66, and below the 200-day MA of 55.17, indicating a neutral trend. The MACD of -0.54 indicates Negative momentum. The RSI at 51.93 is Neutral, neither overbought nor oversold. The STOCH value of 94.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UOVEY.
United Overseas Bank Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $87.16B | 9.08 | 21.64% | 9.77% | 11.82% | 3.41% | |
72 Outperform | $81.15B | 10.18 | 11.88% | 3.11% | 1.79% | 30.93% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $47.99B | 12.89 | 9.22% | 6.44% | 1.01% | 6.82% | |
65 Neutral | $79.74B | 10.95 | 12.12% | 3.77% | 2.91% | 33.77% | |
64 Neutral | $75.25B | 12.62 | 9.93% | 3.19% | -20.94% | -18.71% | |
57 Neutral | $98.43B | 10.79 | 9.73% | 2.31% | -2.84% | 25.48% |
* Financial Sector Average
UOVEY
United Overseas Bank
58.15
5.19
9.80%
ITUB
Itau Unibanco
8.06
2.93
57.02%
LYG
Lloyds Banking
5.11
1.51
41.94%
MFG
Mizuho Financial
7.74
1.85
31.41%
PNC
PNC Financial
201.17
33.86
20.24%
USB
US Bancorp
51.32
10.12
24.55%
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.