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UOB (United Overseas Bank)
26-10-2018, 11:57 AM.
Post: #61
RE: UOB (United Overseas Bank)
Interesting reaction to the results.
My best guess is that while the YoY results looked good, the net interest margin dipped slightly even though the YoY trend remained good.
Any experts here can comment? I think most people were expecting NIM to expand.

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26-10-2018, 12:17 PM.
Post: #62
RE: UOB (United Overseas Bank)
(26-10-2018, 11:57 AM)Big Toe Wrote: Interesting reaction to the results.
My best guess is that while the YoY results looked good, the net interest margin dipped slightly even though the YoY trend remained good.
Any experts here can comment? I think most people were expecting NIM to expand.

Good friday afternoon Big Toe san and All.

3q18 vs 2q18 4% lower.

3Q18 versus 2Q18 Compared with the previous quarter, net earnings for the quarter were 4% lower at S$1.04 billion, as credit costs rose marginally, while total income and expenses were stable despite intensifying macro headwinds. Net interest income grew 4% to S$1.60 billion. With the expectation of further interest rate increases, the Group built up deposits during the quarter to ensure that its funding position remains well placed to meet projected business growth. This resulted in a slight dip in net interest margin to 1.81% for the quarter. Net fee and commission income decreased 3% to S$484 million on the back of lower loan-related and fund management fees. Other non-interest income declined 19% quarter on quarter, mainly due to lower gains from structural foreign exchange positions. Total expenses declined 1% to S$1.01 billion in line with lower operating income, resulting in a slight improvement in cost-to-income ratio to 43.4% for the quarter. Total allowances increased by S$5 million to S$95 million, with credit costs on impaired loans rising to 15 basis points for the quarter

http://infopub.sgx.com/FileOpen/3Q18%20N...eID=530886

Not a call to Buy or Sell. Vested Oldpot.
Not a call to Buy or Sell

Mr Bump: All I Can Smell Is My FEAR

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26-10-2018, 12:50 PM.
Post: #63
RE: UOB (United Overseas Bank)
Thanks kbl, was not diligent enough on my part to look through everything.
So the build up of deposit base causing NIM to dip and the increase in allowance triggered the selling.

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27-10-2018, 12:20 AM.
Post: #64
RE: UOB (United Overseas Bank)
Everyone will point the fingers at the minute dip in NIM and poorer QonQ earnings. In this volatile market, investors will make full use of any excuse to sell down. At current price of $24, UOB is trading at ard 1.15 book. During the Oil and Gas implosion not long ago, all the Big 3 traded below book value.

UOB has stated that it will give out 50% of earnings as dividends. So most likely to be $1.10 to $1.20, which translates to 4.5% to 5% yield. Consensus is that the dividend will somewhat support the share price. However, imho, PTB is the all impt metric that the market is looking at, since earnings can drop should the global economy slow down. In this case, all our local banks still have some leg to fall if market wants them to trade below book. Will defo scope them up if this happens.

Vested in all Big 3.

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02-12-2018, 07:31 AM.
Post: #65
RE: UOB (United Overseas Bank)
Working on a series of articles that teach investors how to run through the financials of banks which work quite differently from normal companies.

Singapore Bank Series (UOB,OCBC,DBS) How do banks really make money? 
http://theasiareport.com - Reflections From Finding Value In Asia

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