Stock Name: UOB
Company Name: UNITED OVERSEAS BANK LTD
Research House: RBS
It says the main driver for the disappointing net interest income ($865 million, 3.1% below its forecast, down 2.1% on quarter) was a 16 bps on-quarter decline in NIM to 1.91%.
Company Name: UNITED OVERSEAS BANK LTD
Research House: RBS
UOB (U11.SG) is +1.4% at $18.26, paring gains from $18.40 at midday after its 4Q results beat net profit expectations largely due to a rise in non interest income, while loan book earnings continued to struggle.
UOB’s 4Q10 results beat (expectations) by 25% at the bottom line level, but the focus is likely to be on weak interest income, strong expense growth and higher provisions. Our first take is that the quality of the results disappointed,” says RBS.
UOB’s 4Q10 results beat (expectations) by 25% at the bottom line level, but the focus is likely to be on weak interest income, strong expense growth and higher provisions. Our first take is that the quality of the results disappointed,” says RBS.
It says the main driver for the disappointing net interest income ($865 million, 3.1% below its forecast, down 2.1% on quarter) was a 16 bps on-quarter decline in NIM to 1.91%.
“While the 4Q10 results where disappointing in quality if not quantity, UOB is trading at only 11.1X FY12F P/E and 1.4X FY12F P/B. We think the market will increasingly look at future earnings delivery as expectations for higher short term interest rates come more sharply into focus.”
It keeps its Buy rating and a $23.00 target price.
No comments:
Post a Comment