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United Overseas Bank (UOVEY)
:UOVEY
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United Overseas Bank
(OTC:UOVEY)
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Rating:73Outperform
Price Target:―
United Overseas Bank's strong financial performance, particularly in revenue growth and profitability, supports a solid overall score. The robust balance sheet with zero debt adds to financial stability. However, cash flow issues need attention to maintain liquidity. Technical analysis presents mixed signals, with some bearish momentum indicators. The stock's valuation is appealing, with a low P/E ratio and high dividend yield, making it attractive for long-term investors.
United Overseas Bank (UOVEY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$45.10B
Dividend Yield6.51%
Average Volume (3M)3.18K
Price to Earnings (P/E)10.1
Beta (1Y)0.38
Revenue Growth1.01%
EPS Growth6.82%
CountryUS
Employees32,071
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.21
Shares Outstanding835,711,000
10 Day Avg. Volume5,874
30 Day Avg. Volume3,183
Financial Highlights & Ratios
PEG Ratio1.48
Price to Book (P/B)1.24
Price to Sales (P/S)4.33
P/FCF Ratio-3.93
Enterprise Value/Market Cap1.51
Enterprise Value/Revenue4.79
Enterprise Value/Gross Profit10.20
Enterprise Value/Ebitda-1.95K
Forecast
1Y Price Target
$30.29Price Target Upside-43.67% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering0
United Overseas Bank Business Overview & Revenue Model
Company DescriptionUnited Overseas Bank (UOVEY) is a leading financial institution headquartered in Singapore with a significant presence across Asia. It operates across several sectors including retail banking, wholesale banking, global markets, and wealth management. UOVEY offers a comprehensive range of financial products and services such as personal and corporate banking, investment banking, insurance, and asset management. The bank is known for its commitment to customer service and innovation, striving to provide tailored solutions to meet the diverse needs of its clients.
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:Aug 06, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted UOB's strong quarterly performance with record net profit and stable asset quality, driven by growth in ASEAN markets and successful integration of Citi's assets. However, there were challenges related to higher specific allowances due to integration issues in Thailand, which are expected to normalize soon.Q3-2024 Updates
Positive Updates
Record-High Quarter Performance
UOB achieved a record-high quarter with a net profit of SGD 1.6 billion, up 16% year-on-year, driven by broad-based growth across all business segments and key markets in ASEAN.
Strong Fee and Trading Income
Fee income reached a new high of SGD 630 million, supported by healthy trade and wealth demand. Trading and investment income was very strong at SGD 709 million.
Stable Asset Quality and Capital Position
Asset quality remains stable with NPL ratio unchanged at 1.5%. Capital position is resilient with CET1 at 15.5% and NSFR at 116%.
Successful Integration of Citi Acquisition
Synergies from the Citi acquisition have kicked in, contributing to growth in customer base and CASA penetration across key markets.
Robust ASEAN Growth and Opportunities
Highlighted the strong growth potential in ASEAN, benefiting from supply chain shifts, digital economy, and green economy sectors.
Negative Updates
Higher Specific Allowances Due to Thai Integration
Higher specific allowance this quarter was mainly from Thailand operational merger issues, which are expected to normalize in the next two quarters.
Credit Cost Increase
Total credit cost on loans rose to 34 basis points, mainly due to integration issues in Thailand and prudent collateral markdowns in the U.S. and Hong Kong.
Company Guidance
During the UOB Q3 2024 earnings call, the executive team provided guidance indicating strong performance and positive future outlook. They reported a record-high net profit of SGD 1.6 billion, representing a 16% year-on-year increase. The bank anticipates high single-digit loan growth, driven by ASEAN regional resilience and trade opportunities. Fee income is expected to grow double-digit, bolstered by cards, wealth, and trade-related fees. UOB aims for a cost-to-income ratio between 41% and 42% and expects total credit costs to remain within 25 to 30 basis points. The bank's asset quality is stable, with a non-performing loan (NPL) ratio of 1.5%, and capital position remains robust with a CET1 ratio of 15.5%. The executives also discussed potential capital management strategies, including share buybacks or increased dividends, to optimize excess capital.United Overseas Bank Financial Statement Overview
Summary
United Overseas Bank shows strong revenue growth and improved profitability, with a substantial net profit margin increase. The balance sheet is robust, with zero debt in 2024, enhancing financial stability. However, cash flow volatility, particularly negative operating and free cash flows in 2024, could pose liquidity risks and requires careful management.Income Statement
United Overseas Bank has shown strong revenue growth, increasing from $13.07 billion in 2020 to $14.28 billion in 2024. Net profit margins have also improved, rising from 22.29% in 2020 to 42.34% in 2024, indicating enhanced profitability. The revenue growth rate from 2023 to 2024 was a substantial 9.76%, showcasing robust business expansion. However, EBIT margins were not calculable for 2024, as EBIT was reported as zero, which could indicate changes in operational cost structure or reporting practices.85
Very Positive
Balance Sheet
The balance sheet reflects a solid equity base with stockholders' equity increasing from $38.53 billion in 2020 to $49.73 billion in 2024. The equity ratio has improved slightly, indicating greater financial stability. The debt-to-equity ratio dropped to zero in 2024 due to zero total debt, reflecting a strong deleveraging position, which minimizes financial risks. Return on equity improved to 12.15% in 2024, showing efficient use of equity capital. However, the significant rise in liabilities must be managed carefully.78
Positive
Cash Flow
The cash flow statement shows volatility, particularly in operating cash flow, which turned negative in 2024, potentially impacting liquidity. Free cash flow also turned negative, a worrying sign, as it reflects a dip from the positive free cash flow seen in previous years. The operating cash flow to net income ratio is negative, indicating potential cash generation issues from operations. A careful review of cash flow management practices is advisable to ensure long-term financial health.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 14.23B | 14.28B | 13.01B | 10.97B | 9.13B | 7.62B |
| Gross Profit | 6.68B | 14.28B | 13.01B | 10.97B | 9.13B | 7.62B |
| EBITDA | -35.00M | 0.00 | 0.00 | 6.32B | 5.43B | 0.00 |
| Net Income | 5.96B | 6.04B | 5.71B | 4.57B | 4.08B | 2.92B |
Balance Sheet | ||||||
| Total Assets | 537.84B | 537.66B | 523.52B | 504.26B | 459.32B | 431.81B |
| Cash, Cash Equivalents and Short-Term Investments | 63.05B | 76.01B | 87.44B | 78.67B | 69.88B | 31.36B |
| Total Debt | 35.35B | 24.97B | 23.49B | 41.63B | 35.21B | 48.15B |
| Total Liabilities | 487.26B | 487.71B | 477.05B | 460.65B | 416.46B | 393.06B |
| Stockholders Equity | 50.35B | 49.73B | 46.23B | 43.37B | 42.63B | 40.90B |
Cash Flow | ||||||
| Free Cash Flow | -8.70B | -15.72B | -17.06B | 9.40B | -3.36B | 5.44B |
| Operating Cash Flow | -7.50B | -14.85B | -16.19B | 10.10B | -2.81B | 6.00B |
| Investing Cash Flow | -1.11B | -771.00M | -645.00M | -3.71B | -440.00M | -511.00M |
| Financing Cash Flow | 8.20B | 1.13B | 19.27B | 5.74B | 3.02B | 16.51B |
United Overseas Bank Technical Analysis
Negative
53.77
Price Trends
54.50
Negative
54.41
Negative
52.95
Positive
Market Momentum
-0.13
Positive
38.52
Neutral
20.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UOVEY, the sentiment is Negative. The current price of 53.77 is below the 20-day moving average (MA) of 54.06, below the 50-day MA of 54.50, and above the 200-day MA of 52.95, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 38.52 is Neutral, neither overbought nor oversold. The STOCH value of 20.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $45.10B | 10.09 | 12.80% | 6.51% | 1.01% | 6.82% | |
73 Outperform | $69.05B | 9.58 | 20.49% | 6.31% | 5.44% | 2.81% | |
72 Outperform | $72.44B | 12.57 | 11.19% | 3.48% | 3.60% | 22.68% | |
71 Outperform | $70.46B | 10.84 | 11.64% | 4.29% | 1.10% | 32.55% | |
70 Neutral | $65.97B | 12.95 | 10.06% | 3.77% | 0.76% | -5.74% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $78.13B | 13.12 | 8.69% | 1.53% | -2.22% | 24.37% |
* Financial Sector Average
UOVEY
United Overseas Bank
53.54
7.25
15.66%
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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.