United Overseas Bank Ltd.

United Overseas Bank is bank in Asia with a network of offices in 19 countries and territories in Asia Pacific, Western Europe and North America. Co. provides a range of financial services including personal financial services, private banking, business banking, commercial and corporate banking, transaction banking, investment banking, corporate finance, capital market activities, treasury services, brokerage and clearing services, asset management, venture capital management and insurance. Co. operates within three main operating segments: Group Retail, Group Wholesale, and Global Markets and Investment Management. As of Dec 31 2014, Co. had total assets of S$306.74 billion.
  • TickerU11
  • ISINSG1M31001969
  • ExchangeSingapore Exchange
  • SectorBanks
  • CountrySingapore

Analysts

UOB
Jonathan Koh

Banking - Is this the best time or the worst to buy banks?

Banks’ share prices are near five-year lows. Based on our sensitivity analysis, current share prices of DBS and OCBC have factored in NPL ratio reaching 4.0-4.5% by end-21, which are higher than their peak of 2.9% and 1.7% respectively during the GFC. The sell-down could persist a little longer but a trough is in sight. Our top pick is OCBC as its 2020F P/B of 0.74x is below trough P/Bs for five out of the past six crises. BUY DBS for 2020 dividend yield of 7.8%. Maintain OVERWEIGHT.

UOB
Jonathan Koh

Singapore Daily - Tuesday, March 24, 2020

KEY HIGHLIGHTS Sector Banking: Is this the best time or the worst to buy banks? TRADERS’ CORNER Singapore Press Holdings (SPH SP): Trading Sell Keppel DC REIT (KDCREIT SP): Trading Buy

UOB
Jonathan Koh

Banking - Extreme circumstances call for extreme measures

The Fed cut the Fed funds rate by an unprecedented 100bp and re-introduced QE during its second unscheduled FOMC meeting last Sunday, an aggressive pre-emptive strike to avert a credit crunch. The worst-case scenario for interest rates has already materialised. Maintain OVERWEIGHT. Our top pick is OCBC as its 2020F P/B of 0.80x is below the trough P/Bs in five out of the previous six crises. BUY DBS for 2020 dividend yield of 7.1%, which is 2SD above its long-term mean.

UOB
Adrian Loh Tzum Yung ...
  • Jonathan Koh

Singapore Daily - Tuesday, March 17, 2020

KEY HIGHLIGHTS Sector Banking: Extreme circumstances call for extreme measures. Update Yangzijiang Shipbuilding (Holdings) (YZJSGD SP/BUY/S$0.80/Target: S$1.25): Receives second-largest order in operating history. TRADERS’ CORNER Singapore Press Holdings (SPH SP): Trading Sell Yangzijiang Shipbuilding (YZJSGD SP): Trading Buy

UOB
Jonathan Koh

United Overseas Bank - 4Q19: Incurs opportunity costs to preserve balance sheet

UOB took a conservative approach to reduce its exposure to Singapore and Greater China to preserve its balance sheet in light of potential escalation in trade conflict between the US and China. Fortuitously, it now has a liquid balance sheet to weather the outbreak of COVID-19 even if the on-going crisis is protracted and deep. Management guided low-single-digit loan growth, NIM compression of 5bp, sustainable growth in fee income and credit costs of 25-30bp for 2020.

1 director bought

A director at United Overseas Bank Ltd bought 25,000 shares at 23.557SGD and the significance rating of the trade was 60/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The na...

UOB
Jonathan Koh

Banking - Is this the best time or the worst to buy banks?

Banks’ share prices are near five-year lows. Based on our sensitivity analysis, current share prices of DBS and OCBC have factored in NPL ratio reaching 4.0-4.5% by end-21, which are higher than their peak of 2.9% and 1.7% respectively during the GFC. The sell-down could persist a little longer but a trough is in sight. Our top pick is OCBC as its 2020F P/B of 0.74x is below trough P/Bs for five out of the past six crises. BUY DBS for 2020 dividend yield of 7.8%. Maintain OVERWEIGHT.

UOB
Jonathan Koh

Singapore Daily - Tuesday, March 24, 2020

KEY HIGHLIGHTS Sector Banking: Is this the best time or the worst to buy banks? TRADERS’ CORNER Singapore Press Holdings (SPH SP): Trading Sell Keppel DC REIT (KDCREIT SP): Trading Buy

UOB
Jonathan Koh

Banking - Extreme circumstances call for extreme measures

The Fed cut the Fed funds rate by an unprecedented 100bp and re-introduced QE during its second unscheduled FOMC meeting last Sunday, an aggressive pre-emptive strike to avert a credit crunch. The worst-case scenario for interest rates has already materialised. Maintain OVERWEIGHT. Our top pick is OCBC as its 2020F P/B of 0.80x is below the trough P/Bs in five out of the previous six crises. BUY DBS for 2020 dividend yield of 7.1%, which is 2SD above its long-term mean.

UOB
Adrian Loh Tzum Yung ...
  • Jonathan Koh

Singapore Daily - Tuesday, March 17, 2020

KEY HIGHLIGHTS Sector Banking: Extreme circumstances call for extreme measures. Update Yangzijiang Shipbuilding (Holdings) (YZJSGD SP/BUY/S$0.80/Target: S$1.25): Receives second-largest order in operating history. TRADERS’ CORNER Singapore Press Holdings (SPH SP): Trading Sell Yangzijiang Shipbuilding (YZJSGD SP): Trading Buy

UOB
Jonathan Koh

United Overseas Bank - 4Q19: Incurs opportunity costs to preserve balance sheet

UOB took a conservative approach to reduce its exposure to Singapore and Greater China to preserve its balance sheet in light of potential escalation in trade conflict between the US and China. Fortuitously, it now has a liquid balance sheet to weather the outbreak of COVID-19 even if the on-going crisis is protracted and deep. Management guided low-single-digit loan growth, NIM compression of 5bp, sustainable growth in fee income and credit costs of 25-30bp for 2020.

Moody's assigns (P)Baa1 to UOB's Additional Tier 1 capital securities component of EMTN programme

Singapore, February 21, 2017-- Moody's Investors Service has assigned Baa1 rating to the perpetual capital securities component of the existing S $15 billion Euro Medium Term Note Programme of United Overseas Bank Limited. Moody's had previously assigned a Aa1 rating to the senior unsecured component, a A3 rating to the subordinated component, and a Prime-1 rating to the short-term component of the EMTN programme. The terms and conditions of the capital securities...

Moody's assigns A3(hyb) to UOB's SGD contractual non-viability subordinated securities

Singapore, February 20, 2017-- Moody's Investors Service, has assigned an A3 local currency subordinated debt rating to United Overseas Bank Limited's planned SGD subordinated notes. The notes will be issued pursuant to UOB's SGD15 billion Euro medium term note program. The size of the transaction, as well as the coupon rate, are yet to be determined by the issuer.

UNITED OVERSEAS BK.LTD. sees an upgrade to Slightly Positive due to a better fundamental star rating

The general evaluation of UNITED OVERSEAS BK.LTD. (SG), a company active in the Money Center Banks industry, has been upgraded by the independent financial analyst theScreener with the addition of a star. Its fundamental valuation now shows 4 out of 4 possible stars while its market behaviour can be considered as moderately risky. theScreener believes that the additional star(s) merits the upgrade of its general evaluation to Slightly Positive. As of the analysis date January 3, 2020, the closing price was SGD 26.63 and its potential was estimated at SGD 28.25.

Salikin Siti

United Overseas Bank Limited

Salikin Siti

United Overseas Bank Limited

Salikin Siti

United Overseas Bank Limited

Rudziah Siti

United Overseas Bank

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