Equity Analysis /
Singapore

SG : United Overseas Bank - Cautious but confident

    Siewkhee Lim
    Siewkhee Lim

    Head of Singapore Research

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    CGS-CIMB
    2 August 2022
    Published byCGS-CIMB

    NIM expansion gained traction in 2Q22 but market penalised share price, likely for downward revisions of loan growth, fees and credit cost guidance. More conservative provisioning policy to cater for potential macroeconomic downside. No systemic asset quality risks raised. China portfolio is sound. Reiterate Add. Having factored in weaker non-II and opex, rising NIM momentum is a re-rating catalyst. Valuation is attractive at 1x FY22F P/BV.