SINGAPORE (May 24): RHB is maintaining its “buy” on UOB given its strong 1Q showing and expectations of stronger ROE in the coming few quarters.
“We raised our longer-term return on equity forecast to 10.9% from 10.4%. With an assumed cost of equity of 8.9%,” says analyst Leng Seng Choon in a Wednesday report.
To recap, UOB had outperformed in sequential loan growth for three straight quarters. This follows the preceding two quarters where UOB had also outperformed its peers in sequential net interest income growth.