UOB (U11.SG) may revisit morning low of $19.40 in post-lunch trade as 2Q10 results not expected to inspire, according to Dow Jones.

Stock +0.4% at $19.60 midday, representing 1.65x P/B. 2Q10 net profit +27.9% on year at $602 million, in line with $600 million tipped in Dow Jones poll, as lower impairment charges offset weakness in both interest income, non-interest income.

Lower charges for bad debts widely anticipated given improvement in asset quality as economic conditions stronger, with NPL ratio down to 1.9% from 2.4% in 2Q09, 2.0% in 1Q10.

On-year decline in net interest income also not surprising given low interest rate environment, but fall in non-interest income bucks increase by OCBC (O39.SG), DBS (D05.SG), as lower trading and investment income offset higher fee and commission income. Interim dividend of $0.20/share proposed, unchanged from year earlier.