UOB - UOB target price cut to $22.70 by Goldman Sachs

Stock Name: UOB
Company Name: UNITED OVERSEAS BANK LTD
Research House: Golman Sachs

Goldman Sachs cuts UOB (U11.SG) target price to $22.70 from $23.60 after revising down 2010-2012 earnings estimate by 3%-6% mainly due to weaker net-interest margin, says Dow Jones.



Goldman Sachs notes 2Q10 net interest margin down 11 bps on-quarter, falling most among other Singapore banks.

“To better face new Basel requirements, UOB is switching out of higher yielding bank debt securities to corporate debts, which could undermine NIMs further,” says research house.



Still, thinks impact mitigated by broker’s lower loss provisions forecast, supported by solid asset quality, high loan loss cover. Stock down 1.1% at $19.08.