Stock Name: UOB
Company Name: UNITED OVERSEAS BANK LTD
Company Name: UNITED OVERSEAS BANK LTD
| Research House: OCBC | Price Call: BUY | Target Price: 19.74 |
UOB 10 May 2012 |
| 4QExceeded street expectations -1Q beat expectations -Challenges remain, but disciplined business approach -Keeping estimates and FV; maintain BUY UOB Group turned in net earnings of S$688m, which was above market expectations. Improvement was broad based. Net Interest Margin increased from 1.95% in 4Q11 to 1.98% in 1Q12. However, uncertainties remain, and this has reduced medium-term earnings visibility. As we are already above market for our FY12 net profit estimates, we are retaining our FY12 estimates. However, reflecting the lower visibility for the longer term, we have taken the prudent move of still maintaining a higher level of impairment charge for FY13 at S$384m, albeit down from FY12 estimates of S$452m. We are keeping our fair value estimate of S$19.74 as well as our projected dividend payout of 60 cents. Maintain BUY. |
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