Equity Analysis /
Singapore

SG : United Overseas Bank - 1Q21F: Aiming to close the valuation gap

    Andrea Choong
    Siewkhee Lim
    Siewkhee Lim

    Head of Singapore Research

    CGS-CIMB
    19 April 2021
    Published by

    We see flat 1Q21F NIM, stronger wealth management, and treasury income. Stronger loan growth momentum (+3.5% qoq) coupled with lower credit costs (30bp) were likely the key differentiating factors for UOB vs. peers in 1Q21F. Reiterate Add. UOB is our top pick. A strong show of earnings could close the valuation gap between UOB (1.0x FY21F P/BV) and peers (1.1x-1.4x).