$UOB 5xLongSG261217(W9AW.SG)UOB is still one of my stronger positions, and I think the banking sector remains quite soli…

$UOB 5xLongSG261217(W9AW.SG)UOB is still one of my stronger positions, and I think the banking sector remains quite solid for now. Singapore’s economy is still growing firmly, while MAS expects the financial sector to continue expanding with support from strong credit growth.

For UOB specifically, the latest results showed a resilient core business. Net profit remained at around S$1.4 billion, fee income continued growing, and trading income was strong. Asset quality also stayed stable, with the non-performing loan ratio unchanged at 1.5%.

Of course, lower interest rates can pressure net interest margins, which is one risk I’m watching. But UOB has been managing its funding costs, growing its wealth and wholesale banking businesses, and maintaining a strong capital position. That gives me more confidence that the bank is not depending only on interest income.

This is a leveraged DLC, so I know the movement can be much sharper in both directions. I won’t assume it will keep going up without any pullback. But as long as the banking sector stays healthy, credit quality remains stable, and UOB continues delivering steady earnings, I’m comfortable holding and letting the trend play out. @Captain's Treasure