UOB Earnings Report: 4Q Common Equity Tier 1 Ratio Hits 13.4% with Final Dividend per Share at S$0.85

UOB on Smartkarma

UOB, a major bank in Singapore, has recently received some negative analyst coverage on Smartkarma, an independent investment research network. According to Daniel Tabbush, a top independent analyst on the platform, UOB‘s net profit has decreased by 1.5% year-on-year, while credit costs have risen by a staggering 126%. This has been attributed to worsening loan growth, higher integration costs from the acquisition of Citibank, and a significant increase in new non-performing assets. Tabbush also predicts that the situation may worsen in the following quarter.

In another report by Tabbush on Smartkarma, he highlights UOB‘s struggles with its operating costs, largely due to the integration of Citibank and the impact of the oil industry. The bank’s credit costs have doubled, and it is now relying more on trading activities. Tabbush also raises concerns about UOB‘s focus on small and medium enterprises, which may be more vulnerable to economic challenges. In addition, domestic credit growth in Singapore has been declining, which could indicate a decrease in demand and potentially deteriorating credit metrics for UOB.

A look at UOB Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

According to the Smartkarma Smart Scores, United Overseas Bank (UOB) has a positive long-term outlook. The company has received scores of 3 for Value, 4 for Dividend, 4 for Growth, 3 for Resilience, and 5 for Momentum. This means that UOB performs well in terms of its value, dividend payouts, growth potential, ability to withstand challenges, and overall momentum in the market.

As a leading financial services provider, UOB offers a wide range of services such as personal financial services, wealth management, private banking, and commercial and corporate banking. They also excel in areas like investment banking, corporate finance, and asset management. With their strong performance in the Smartkarma Smart Scores, investors can have confidence in the long-term stability and growth potential of UOB.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.

💡 Before it’s here, it’s on Smartkarma