Friday, February 24, 2012

United Overseas Bank: Pay me for liquidity!

Stock Name: UOB
Company Name: UNITED OVERSEAS BANK LTD
Research House: CIMBPrice Call: HOLDTarget Price: 19.42



United OverseasBank  [ PDF] Pay me for liquidity!UOB SP / UOBH.SI |  NEUTRAL - Maintained  |  Share Price S$18.40 -Tgt. S$19.42 Banks  |  - by KennethNG, CFA / Daniel LAU
Although results merely met expectations,we liked the tone. Up went margins as UOB raised pricing in a world oftight liquidity. Fees did not weaken further in a seasonally slow quarter.Trading did well even after losses in trimming down debt securities. 4Q11profit (S$558m) was within our expectations (S$574m) & consensus (S$572m).Strong NII was the key positive, though offset by a spike in credit costs.We adjust FY12-13 EPS, introduce FY14. We factor in higher loan-growthestimates and raise our GGM target price. Maintain Neutral.


Source: CIMB 24 February 2012
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