Equity Analysis /

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

    Andrea Choong
    Siewkhee Lim
    Siewkhee Lim

    Head of Singapore Research

    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).