DBS Group Research analysts Lim Rui Wen and Ng Jia Hui have kept their “hold” call for the bank as they see limited catalysts due to the expectations of rate cuts later this year. Furthermore, the bank posted 4QFY2023 net interest margin (NIM) of 2.02%, a sharper contraction of 7 basis points (bps) q-o-q on loan yields due to competition for high-quality credits.
Analysts have kept their calls unchanged and their target prices somewhat intact after United Overseas Bank (SGX:U11
) (UOB) reported its results for FY2023 ended Dec 31, 2023. With the rates cycle at its peak and poised to trend down soon, analysts see limited upside catalysts for UOB’s share price. However, with a generous dividend, the share price will be well supported as well.
On Feb 22, UOB announced a core net profit of $6.06 billion in FY2023, 26% higher y-o-y. Net profit in 4QFY2023 rose by 22% y-o-y to $1.4 billion.
