UOB share price: 4 key considerations ahead of Q1 earnings
Here are four pivotal points that investors should know ahead of United Overseas Bank’s earnings release on 06 May 2020.
When is UOB’s Q1 2020 financial results out?
Singapore bank United Overseas Bank (UOB) is set to announce its first quarter earnings for the three months ended 31 March 2020, on Wednesday 06 May 2020.
UOB has a network of more than 500 offices in 19 countries and territories in Asia Pacific, Europe and North America. The bank has an Aa1 rating by Moody’s Investors Service and AA- rating by both S&P Global Ratings and Fitch Ratings.
Here are four things that investors should know ahead of the upcoming financial report.
1. UOB CEO: ‘downward pressure in customer margin’
UOB Deputy Chairman and Chief Executive Officer Wee Ee Cheong had provided the following guidance for the 2020 financial year in the bank’s most recent quarterly report:
‘Many signs point to more challenging times ahead including the unfolding impact of the COVID-19 epidemic,’ adding during the group’s Q4 FY2019 earnings call that he expects there to be ‘downward pressure in customer margin’ alongside ‘slight uptick in credit costs’, given that Mainland China accounted for S$30 billion or 7% of the group’s total assets as of 31 December 2019.
Wee said that the bank will continue to invest in its capabilities throughout this crisis, including digital, and ‘seize the opportunities arising from the shifting economic environment’.
‘It will enable us to emerge stronger from these trying times and to scale up our franchise across the region,’ he said.
IG is a world-leading online trading and investments provider for thousands of financial markets. With CFDs, you can buy long or sell short on UOB shares and other Singapore Blue Chip stocks depending on whether you think prices will rise or fall. Start today by opening an IG account.
2. UOB’ earnings met analyst estimates in all four quarters of 2019
The lender’s net profit for the full 2019 fiscal year rose 8% to S$4.34 billion. Total income for the full year also grew 10% to cross the S$10 billion mark, led by healthy growth in client franchise as well as an improvement in trading and investment income. Return on equity increased to 11.6%.
Earnings for all four quarters of 2019 were also on par with Refinitiv analyst estimates.
For the upcoming Q1 FY2020 report, Refinitiv analysts have given a S$793.3 million consensus prediction for net profit and an earnings per share estimate of S$0.483. These are 29.7% and 21.5% lower respectively than estimates for the same quarter one year prior.
In terms of share price, UOB shares are down 25.1% year-to-date, with most of the drop having occurred between February and March 2020 during the peak of the coronavirus outbreak.
The average share price target for UOB based on five analyst estimates is S$21.37 per share. Of these, four have rated the UOB stock a ‘hold’ and one rated it ‘accumulate’.
As at 09:45 SGT on 05 May 2020, UOB shares are trading at S$19.98 per share, based on IG trading data.
3. UOB not planning any layoffs for now
Wee also said in an April 2020 statement that the company, which employs over 24,000 people, is not planning any layoffs this year.
‘For our people, we are committed to seeing them through to better times’, said Wee, adding that the bank had supplied every employee with face masks as well as provided them with relevant online training programmes during this pandemic.
4. UOB offers collateral-free loans to SMEs
On 21 April 2020, UOB announced that it would be offering pre-approved loans of up to S$200,000 to help ease the short-term liquidity woes of its small business customers impacted by the COVID-19 pandemic.
With small businesses making up two in three of all small- and medium-sized enterprises in Singapore, the lender said that the collateral-free loans will help many of these companies, especially those from hard-hit sectors such as retail and food and beverage, gain access to much-needed funds quickly.
The bank said it has also been active in helping customers understand and apply for the government-assisted financing schemes administered by Enterprise Singapore.
How to trade Singapore stocks with IG
Looking to trade UOB shares and other Straits Times Index (STI Index) stocks? Open a live or demo account with IG and buy (long) or sell (short) the asset using derivatives like CFDs in a few easy steps:
- Create an IG Trading Account or log in to your existing account
- Enter <company name> or <ticket code> in the search bar and select it
- Choose your position size
- Click on ‘buy’ or ‘sell’ in the deal ticket
- Confirm the trade
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.