Stock Name: UOB
Company Name: UNITED OVERSEAS BANK LTD
Research House: Nomura
Nomura Research in an Apr 19 research report says: "With FY2010 loan growth having lagged peers and the sector (12% vs 15% for sector S$), management is guiding for a more comparable performance in FY2011F, underpinned by: (i) above-sector S$ loan growth, helped by market share gains in ASEAN-centric corporate lending; and (ii) broad non-S$ growth from ex-OECD platforms (24% of group assets).
"We raise FY2011F group loan growth to +15% (from 9%), with upside tempered by uncertain momentum pick-up in Thai, Indo (restructurings) and continued run-down of OECD loans (7% of book). Net impact of upgraded loan growth forecast but weaker margin trend means modest 2-3% earnings upgrade, with uptick in Gordon growth price target to $21.90 or 1.7x FY11F adjusted book value, 13x FY11F earnings. MAINTAIN NEUTRAL."
Company Name: UNITED OVERSEAS BANK LTD
Research House: Nomura
Nomura Research in an Apr 19 research report says: "With FY2010 loan growth having lagged peers and the sector (12% vs 15% for sector S$), management is guiding for a more comparable performance in FY2011F, underpinned by: (i) above-sector S$ loan growth, helped by market share gains in ASEAN-centric corporate lending; and (ii) broad non-S$ growth from ex-OECD platforms (24% of group assets).
"We raise FY2011F group loan growth to +15% (from 9%), with upside tempered by uncertain momentum pick-up in Thai, Indo (restructurings) and continued run-down of OECD loans (7% of book). Net impact of upgraded loan growth forecast but weaker margin trend means modest 2-3% earnings upgrade, with uptick in Gordon growth price target to $21.90 or 1.7x FY11F adjusted book value, 13x FY11F earnings. MAINTAIN NEUTRAL."
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