United Overseas Bank (UOB) Group

Earlier that morning, UOB reported 40% lower 3Q20 net earnings of $668 million.

Singapore banks are navigating the downturn, with q-o-q credit cost and net profit improvements expected, say analysts.

As a bank with a wide ASEAN footprint, UOB has some catching up to do, says Maybank analyst Thilan Wickramasinghe.

The notes are expected to be issued on September 16.

Singapore’s banks are still experiencing broad-based business contraction, says CGS-CIMB, and while credit growth may pick up as GDP recovers, the end of moratoriums could deepen asset quality pressures.

The Covid-19 pandemic and the retreat of globalisation have widened the financial fortunes between developed and emerging economies. Does it mean the end of an era of supercharged catch-up growth for EMs?

Shareholders of DBS, UOB and OCBC will, unfortunately, have to make do with no more than $0.72, $0.78 and $0.318 per share respectively, lowering yields between 3-4%.

For the half-year period ended June, UOB Kay Hian reported earnings of $76.0 million, a 163.2% surge from the $29.0 million posted in 1H19.

PhillipCapital is revising UOB’s FY2020F earnings down 5% to reflect business disruptions from Covid-19, as the bank posted 2Q2020 earnings 18% below previous estimates last week.

Singapore banks can expect lower net interest margins (NIMs) ahead though credit costs could ease in 2H2020. The reports come after the three local banks posted broad-based net profit declines for 1H20 last week.