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Analysts take a shine to UOB's net interest margin, voice concerns over asset quality, macro outlook

Jovi Ho
Jovi Ho8/1/2022 12:33 PM GMT+08  • 4 min read
Analysts take a shine to UOB's net interest margin, voice concerns over asset quality, macro outlook
Target prices range from $29.30 to $35.70 against UOB's current share price of $27.95.
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United Overseas Bank (UOB) is cautious but confident following its 2QFY2022 results ended June, as expanded margins and the recovery in trading and investment income boosted the bank to post $1.11 billion in net profit, 11% higher y-o-y.

In a July 29 note, CGS-CIMB Research analysts Andrea Choong and Lim Siew Khee are maintaining “add” on UOB with a target price of $35.60.

“Net interest margin (NIM) expansion remains UOB’s key earnings lever, offsetting the softer non-interest income and opex. On this end, we have factored in the Fed funds rate increasing to some 3.5% by end-FY2022, a slight cut to 3.25% by end-FY2023, and 3% by end-FT2024,” writes Choong and Lim.

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