🦎 ANALYST WATCH | 13 AUGUST 2026

U11 UNITED OVERSEAS BANK

WHAT THE ANALYST SAYS

RHB upgraded UOB to BUY, raising its target price to S$46.60 from S$41.30, about 8 percent upside. The core thesis is valuation, RHB believes UOB's discount to peers has become excessive and should narrow, even against a mixed operating quarter. Reported Q2 net profit was S$1.5 billion, up 10 percent year on year, but that included a S$200 million property disposal gain. Strip that out and core first half profit actually fell 4 percent, on softer fees, margin pressure and higher costs. Net interest margin fell to 1.74 percent, and management cut its full year fee income guidance from high single digit to low single digit growth. The more significant item is asset quality, new non-performing assets jumped to S$902 million this quarter from S$341 million last quarter, with about two thirds tied to a single Greater China real estate borrower already on UOB's watch list. Management says it does not expect further large slippages. RHB's target price increase comes mainly from lowering its cost of equity assumption, not from stronger earnings forecasts, this is primarily a valuation call rather than an upgrade on business momentum.

NOTE

For the full report, check RHB's published research or your broker platform.

Not financial advice. Iggy's Forensic Compliance Standards apply.