CGS-CIMB Research analysts Andrea Choong and Lim Siew Khee have maintained their “buy” call on United Overseas Bank (UOB) as they see the bank being “on track” towards high-single-digit loan growth in FY2021.

“We expect UOB to post [around] $995 million net profit for 1Q2021 (+45% q-o-q, +16% y-o-y). Its loan growth is on track to meet its full-year guidance of a high single-digit growth,” write the analysts in a report dated April 19.

“Delivery of its pipeline of deals built over the past quarters is materialising, with the bulk of the year’s drawdowns likely to come in in 1HFY2021. We expect 3.5% q-o-q loan growth in 1QFY2021 (4QFY2020: -1.2% q-o-q), supported by commercial real estate term loans,” they add.

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