UOB: CS note that Underperformance overdone and valuations are starting to look attractive.
UOB now trades at 1.1x P/B, at decade lows excluding 2009. It appears overextended (-1.8 sd) vs 5yr avg of 1.6x and P/B vs peers is near 5yr lows. House think it is too early to assume UOB’s asset quality performance could be worse this cycle than peers’ and while book value risks are real, mgt has been actively managing the exposure and has
already taken provisions on the exposure. UOB’s underperformance appears overextended and could reverse in the short term.
UOB is ‘aggressively’ reducing its exposure to European securities, now significantly below $1b (vs S$1.2b as of Sept). With pressure on funding costs and efforts to shore up USD liquidity further, NIMs will probably remain under pressure near term. Asset quality remains comfortable—the NPL increase in 3Q11 does not indicate an incremental deterioration of the book. House however maintain U/p, TP $17.70.
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Time to take some profit.
wangerism ( Date: 18-Jul-2012 17:10) Posted:
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Banks have been powering up for the past wks...
TradeChancellor ( Date: 18-Jul-2012 11:33) Posted:
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UOB seem to have covered the gap, need to form support at ~19.50 for a convincing cover
broke out of recent high... we need vol. to be more convincing...
alexchia01 ( Date: 27-Apr-2012 11:08) Posted:
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I think can Buy UOB today.
Entry: $18.70 to $18.80
Stop-Loss: $18.20
More on my Blog at Alex Trades.
Good luck.
The impending meltdown will be across the board. UOB will not be spared either.
Broke rising wedge pattern....dun look gd....
Watch out for the potential trend reversal on UOB.
http://mystocksinvesting.com/singapore-stocks/uob-bank/uob-bank-rising-wedge-pattern/
" UOB is ‘aggressively’ reducing its exposure to European securities, now significantly below $1b (vs S$1.2b as of Sept).)"
Is it Meaning UOB still " hooked" below $1b exposure to European securities ????
krisluke ( Date: 28-Nov-2011 22:32) Posted:
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UOB: 4Q11 results slightly below to in line, but earnings quality is a positive.
Net profit came in at $558m, +7% qoq, despite a higher than expected loan loss charge resulting from a $68m charge on its 'Rest of World' loan book, and a $53m charge mainly related to contingent liabilities. UOB further took care of potential problem exposures in Europe by paring its EU debt portfolio to $1.6b (of which bank debt $0.6b) and providing for legacy problem loans.
At the same time, and in contrast to other Spore banks, the NPA ratio fell 14bps to 1.79%, a result of lower Singapore NPLs.
Underlying operations showed positives.
Strong NIM rebound stood out, with 4Q11 NIM +6bps qoq and +4bps yoy to 1.95%, beating peers’ stable qoq NIM, and reflecting greater focus on loan margins rather than market share . This was partially a result of higher yields on some of its longer-duration USD loans, and a 7% QoQ fall in the USD book as lower yield loans ran off.
Loan growth (+2.5% qoq +25.0% yoy) was largely driven by its regional operations, particularly Malaysia (+8.3% +35.6%) and Indonesia (+5.4% +45.0%).
The bank declared $0.40 final div, but no scrip was offered.
UOB guides for low-teens loan growth, highlighting that weak US$/trade finance loans were due to repayments, and demand has since picked up.
Goldman says results were mixed, and expects UOB shares to trade sideways. Keeps at In-line,
Citi keeps at Sell, but raises TP to $17.70 from $15.30.
Goldman
Deutsche keeps Hold rating and TP $19.
JPM keeps at Neutral, raises TP to $18.10 from $17.40.
Nomura remains Neutral, keeps TP at $18.40.
HSBC keeps Overweight and TP $22.90.
BNP keeps Buy and TP $19.60.
Net profit came in at $558m, +7% qoq, despite a higher than expected loan loss charge resulting from a $68m charge on its 'Rest of World' loan book, and a $53m charge mainly related to contingent liabilities. UOB further took care of potential problem exposures in Europe by paring its EU debt portfolio to $1.6b (of which bank debt $0.6b) and providing for legacy problem loans.
At the same time, and in contrast to other Spore banks, the NPA ratio fell 14bps to 1.79%, a result of lower Singapore NPLs.
Underlying operations showed positives.
Strong NIM rebound stood out, with 4Q11 NIM +6bps qoq and +4bps yoy to 1.95%, beating peers’ stable qoq NIM, and reflecting greater focus on loan margins rather than market share . This was partially a result of higher yields on some of its longer-duration USD loans, and a 7% QoQ fall in the USD book as lower yield loans ran off.
Loan growth (+2.5% qoq +25.0% yoy) was largely driven by its regional operations, particularly Malaysia (+8.3% +35.6%) and Indonesia (+5.4% +45.0%).
The bank declared $0.40 final div, but no scrip was offered.
UOB guides for low-teens loan growth, highlighting that weak US$/trade finance loans were due to repayments, and demand has since picked up.
Goldman says results were mixed, and expects UOB shares to trade sideways. Keeps at In-line,
Citi keeps at Sell, but raises TP to $17.70 from $15.30.
Goldman
Deutsche keeps Hold rating and TP $19.
JPM keeps at Neutral, raises TP to $18.10 from $17.40.
Nomura remains Neutral, keeps TP at $18.40.
HSBC keeps Overweight and TP $22.90.
BNP keeps Buy and TP $19.60.
advice needed.want to invest in uob for long term 2 to 3 years. how is the price now.