$UOB 5xLongSG261217(W9AW.SG)UOB still doing its job for me. The position has pulled back from the higher levels, but I’m still comfortable holding because the underlying business continues to deliver.

Latest Q2 results were actually quite encouraging. Net profit grew 10% YoY to S$1.5b despite the lower-rate environment. The interesting part for me is where that growth is coming from. Net interest income is under some pressure as margins compress, but wealth management continues to perform strongly and reached a record half-year level. This diversification matters because UOB doesn’t need to depend entirely on lending margins for earnings growth.

ASEAN exposure is another reason I still like the story. UOB has spent years building its regional franchise, and I think that gives the bank a longer runway beyond Singapore alone. If regional trade, wealth and cross-border flows continue growing, there are several ways for earnings to expand even when interest rates are less favourable. So for me, this is still a hold and let the thesis work situation. The position may move around because 5x leverage exaggerates every pullback, but underneath that volatility I still see a profitable bank, strong wealth momentum, regional growth and healthy capital returns.

Not chasing, not adding blindly either. Just holding and watching whether UOB can build its next leg higher. Sometimes the boring trades are the ones worth being patient with. @Captain's Treasure