JP Morgan says: “Numerically, UOB beat our 1QFY2026 estimates by 5%. Our full-year estimates are 6% below Bloomberg consensus, which suggests, at best, an in-line set of results. Yet, given the high bar set by DBS in 1QFY2026, we believe these numbers may not be a driver for the stock in either direction.”
United Overseas Bank (UOB) reported 1QFY2026 ended March 31 net profit of $1.437 billion, which was above the latest Bloomberg estimates of $1.39 billion, or a 3.3% beat. Net profit was up 2% q-o-q but down 4% y-o-y. Net interest income moderated 1% q-o-q and 4% y-o-y to $2.3 billion while net interest margin (NIM) narrowed 2 basis points (bps) q-o-q to 1.82%. Exit NIM was 1.83%. Net fee income increased 2% q-o-q but fell 8% y-o-y to $637 million. Other non-interest income rose 45% q-o-q but declined 17% y-o-y to $462 million.
UOB kept its FY2026 guidance unchanged, with low single-digit loan growth, full-year NIM of 1.75%–1.80%, high single-digit fee growth, low single-digit operating cost growth, and total credit costs at 25–30 bps.
