UOB
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UOB Results Announcement
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UOB considered breakdown from descending triangle? Target 17.50 and 16.50....any expert opinion?
Near support of descending triangle. Chances of breakdown higher than chance of rebound?
Short or Accumuate?
bollinger bands are quite tight, might have a break out soon
It looks like the stock is starting to trend up?
Business Times - 30 Oct 2010
UOB beats expectations with 37.5% surge in Q3 earnings
Bank remains optimistic in its outlook; CEO says Asean is still a global sweet spot
By CONRAD TAN
UNITED Overseas Bank's net profit rose 37.5 per cent to $688 million for the third quarter from a year earlier, beating analysts' estimates, as bad-loan charges fell with improved economic conditions in its main markets.
Higher fee and commission income, and bigger-than-expected trading and investment gains also helped to offset a widely expected fall in its net interest income from lending, its main revenue stream.
The bank also signalled continued optimism in its outlook.
'The global dilemma remains - gradual but volatile recovery in the West and asset-price inflation in the East. However, the risks of a double-dip recession and renewed sovereign debt crisis remain manageable, and Asean economies will remain a global sweet spot,' chief executive Wee Ee Cheong said.
Compared to the March-June quarter, UOB's net profit of $688 million for the three months to end-September was up 14.3 per cent. UOB's share price ended 0.4 per cent lower at $18.64 yesterday.
Seven analysts polled by Reuters had forecast an average Q3 net profit of $582 million, while the average forecast of seven analysts surveyed by Bloomberg was $590.7 million.
For the first nine months of the year, UOB's net profit came to $1.99 billion, up 44.2 per cent from a year ago.
Its net interest margin - a measure of how profitable a bank's lending activities are - slid to 2.07 per cent for Q3, compared to 2.14 per cent for the prior three months and 2.39 per cent for Q3 last year.
As a result, its net interest income slid 4.5 per cent to $883 million, compared to a year earlier, though it fell only slightly - by 0.1 per cent - from Q2.
Persistently low interest rates and renewed competition are putting severe pressure on the lending margins of banks here, making their main lending business less profitable.
To compensate, UOB made more loans in July to September, especially home loans and loans to non-bank financial institutions, a category that includes real estate investment trusts and fund management firms.
UOB's net customer loans - after deducting charges for bad loans - expanded 3.2 per cent over the quarter to $107.1 billion at the end of September, driven by housing loans and loans to non-bank financial institutions. Over the year, net loans grew 8.9 per cent.
Its Singapore-dollar loans grew 4.5 per cent to $63.7 billion, slightly faster than the industry growth of 4.3 per cent, going by data released by the Monetary Authority of Singapore yesterday.
UOB also expanded its overseas lending, particularly in Malaysia, its second-biggest market, where loans grew 5.2 per cent over the quarter to $14.4 billion. Its housing loan portfolio - which includes loans outside Singapore - grew 5 per cent over the quarter to $32 billion.
Non-interest income rose to $585 million, up 48 per cent from a year earlier and 53 per cent from the second quarter, boosted by trading and investment gains of $173 million - a sharp increase from just $53 million for Q2 and $12 million for Q3 last year.
Impairment charges for loans and other assets fell to $134 million from $235 million a year earlier, but was higher than the $52 million for Q2, as the bank set aside more provisions for possible losses on a bigger loan book.
'The highlight was really a bigger-than-expected rebound in trading income,' said Kenneth Ng, head of research at CIMB. 'But the outlook on interest income is not great.'
UOB's annualised earnings per share for Q3 came to $1.66, up from $1.52 for Q2 and $1.26 for Q3 last year. Its annualised return on equity rose to 13.8 per cent, from 13 per cent for Q2 and 12 per cent for Q3 2009.
Its core Tier 1 capital ratio came to 13 per cent at the end of September, unchanged from at the end of June.
OCBC Bank reports its earnings on Monday, followed by DBS Group on Thursday.
ECB and rich european countries will start buying bonds and risky assets to stabilise the markets.....virtual and vicious cycles...
hahaha.... good one...
Sporeguy ( Date: 08-May-2010 10:43) Posted:
| UOB sounds like you owe me. |
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UOB sounds like you owe me.
Business Times - 07 May 2010
Update: UOB Q1 net profit soars 71%, beats expectations
SINGAPORE - United Overseas Bank posted a 71 per cent rise in first-quarter net profit, helped by lower bad-debt charges and a one-time gain from the sale of its insurance unit, beating expectations.
UOB, Singapore's third-biggest bank, posted a net profit of S$700 million (US$499.3 million) in January-March, up from S$409 million a year earlier.
That compared with an average forecast of S$519 million, according to five analysts polled by Reuters.
UOB's earnings included a one-time gain of S$82 million from the divestment of UOB Life Assurance.
Earlier DBS, Southeast Asia's biggest bank, posted a 23 per cent rise in quarterly profit, slightly ahead of analysts' forecast but below expectations that had been raised following Oversea-Chinese Banking Corp's stellar result.
OCBC earlier this week smashed forecasts with a 24 per cent jump in quarterly profit. -- REUTERS
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Business Times - 05 Aug 2009
Updated: UOB Q2 profit off 22% on bad debt; outlook rosy
SINGAPORE -
United Overseas Bank, Southeast Asia's second-biggest lender, said it was upbeat on prospects due to an improving global economy after posting a 22 per cent drop in quarterly profit on higher bad debt charges.
The outlook for Singapore banks, like their Asian peers, is improving as they take advantage of strong capital markets to boost trading income and as bad debts have generally risen at a slower-than-expected pace.
Signs are also emerging that loan growth may revive due to a recovery in residential property, making analysts more bullish on Singapore banks on hopes that a more benign economic outlook could boost earnings in 2010.
'Looking ahead we are certainly more upbeat about prospects as global sentiment improve,' said UOB CEO Wee Ee Cheong said in a statement ' April-June net profit fell to $470 million (US$328.7 million) from $601 million a year ago, UOB said on Wednesday.
The result beat analyst forecasts for a profit of $441 million due to lower taxes.
Oversea-Chinese Banking Corp, Singapore's smallest listed bank, surprised the market on Monday with a 10 per cent rise in quarterly profit on higher trading income and strong loan margins.
DBS , the region's biggest bank, reports earnings on Friday.
Bad debtUOB wrote down $465 million in the second quarter to account for bad debt - largely comprising loans that have gone sour - more than double from a year earlier.
Brian Hunsaker, an analyst at Fox-Pitt Kelton, said UOB's provisions were 'general' rather than 'specific', indicating the bank was still cautious.
UOB said net lending grew 0.4 per cent from a year earlier and net interest income rose 3.9 per cent to $908 million from a year earlier, helped by a 12 basis point jump in net interest margins to 2.35 per cent from a year ago.
Non-interest earnings, such as commissions and fees on investment products, was relatively flat at $551 million as capital markets revived.
'We think investors should be overweight the Singapore banks, and within the sector our preference remains DBS given attractive relative valuation,' said Andrew Hill, a banking analyst at Deutsche Bank before the result. 'However, we have also upgraded UOB to 'buy' given valuation upside.'
But other analysts such as those at HSBC are sanguine about earnings prospects because weak external demand may cap loan growth to the manufacturing and business services.
UOB's shares have underperformed its Singapore rivals this year, rising around 37 per cent so far this year, below the benchmark Straits Times Index's which has risen about 50 per cent. -- REUTERS
| May 6, 2009 |
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UOB profit falls 22.7% in Q1
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By Gabriel Chen
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UNITED Overseas Bank's first-quarter net profit fell 22.7 per cent to $409 million, from over a year ago.
Net interest income and non-interest income both grew for the three months ended Marc 31, compared to the same period last year.
However, impairment charges increased to $378 million from $89 million in the first quarter last year.
The increase was largely due to higher individual impairment on loans and higher collective impairment provided for loans and investments on account of the global economic downturn.
Mr Wee Ee Cheong, the UOB Group's Deputy Chairman and Chief Executive Officer, said: 'Despite the extraordinary environment, we have achieved a decent set of results for the first quarter, benefiting from the industry's move towards 'back to basics.
"There is much talk about 'green shoots' and a growing sense of optimism about the economy. The banking world is adjusting to new realities, and is undergoing a major overhaul so that confidence can be re-established.
'While policy measures are in the right direction, distressed balance sheets in the global banking system can only be restored over time.'
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Business Times - 06 May 2009
UOB, OCBC surprise with smaller Q1 profit drops
* UOB's Q1 net profit down 23%, OCBC's net falls 12%
* Both banks say outlook tough
* Analysts say asset quality not very bad, interest income up
* UOB shrs erase losses, up 0.2% after results, OCBC flat
SINGAPORE - UOB and OCBC, Singapore's second and third-biggest banks, posted smaller-than-expected falls in net profits on Wednesday as they made more loans at higher rates which partially offset jumps in bad-debt charges.
Asia's economic slump is gradually showing up in soured loans and lower investment gains for banks, but analysts said the outlook would improve after the city-state suffered from its worst ever GDP contraction in the first quarter.
'The economy was very weak in the first quarter and the results were fairly resilient. If this is as bad as it gets, going forward results should be better,' said David Lum, a banking analyst at Daiwa Institute of Research.
'The asset quality is not as alarming and the year-on-year loans and margins have improved.' Both United Overseas Bank (UOB) and Oversea-Chinese Banking Corp (OCBC) sounded cautiously optimistic.
'The journey ahead remains tough, but we are confident that we will come out of the crisis stronger,' UOB CEO Wee Ee Cheong said in a statement.
OCBC's chief executive David Conner said the economic outlook remains difficult and uncertain.
UOB's Jan-March net profit fell to S$409 million (US$278 million) from S$529 million a year ago, against an average forecast of S$387 million by four analysts.
Bad-debt charges rose more than four-fold to S$378 million for the quarter from S$89 million in the year-ago quarter, largely due to losses on loans and investments due to the global economic downturn, the bank said.
OCBC's first-quarter net profit fell to S$545 million from S$622 million a year ago. Analysts had predicted a net profit of S$293 million, according to the average of five forecasts compiled by Reuters against a comparable figure of S$460 million a year ago that excluded exceptional items.
The bank benefited from higher insurance income from its subsidiary Great Eastern .
However, bad-debt charges rose to S$197 million compared with a writeback of S$8 million a year ago.
DBS Group, Southeast Asia's biggest bank, will report earnings on Friday.
Despite the optimism in the market that has boosted Singapore's financial index by half since March 10, not everyone is bullish on banks.
'We expect asset quality to show real deterioration in second half of 2009 as the NPL cycle lags,' Morgan Stanley's Matthew Wilson wrote in a note about non-performing loans.
UOB chairman Wee Cho Yaw, whose family controls the lender, said earlier this month the financial crisis may last another 1-2 years and he is pessimistic about the outlook.
UOB said net lending grew 5.6 per cent from a year earlier, against a 7.7 per cent growth in the fourth quarter, while OCBC saw a loan growth of 7 per cent in the first quarter.
The one consolation for both banks was a rise in net interest margin, as Singapore banks were able to charge higher prices on loans as foreign players scaled back from Asian markets.
Net interest margin for UOB rose to 2.41 per cent from 2.20 per cent a year ago and OCBC's net interest margin moved up to 2.42 per cent from 2.17 per cent a year ago.
Till Wednesday's midday break, shares of UOB were up 0.9 per cent from the start of the year, underperforming DBS, whose shares were up by around 28 per cent and OCBC which had gained 26 percent. The benchmark Straits Times Index is up 18 per cent in 2009. -- REUTERS
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Click here for UOB's news release
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_BEC2BADA1ECC721C482575AE0008F22D/$file/UOBNewsRelease1Q09Results.pdf?openelement
Financial statements
http://info.sgx.com/webcoranncatth.nsf/VwAttachments/Att_BEC2BADA1ECC721C482575AE0008F22D/$file/1Q09UOBGroupResults.pdf?openelement
