The Motley Fool

4 Things to Like About UOB Now

United Overseas Bank Ltd (SGX: U11), or UOB, is one of the three major banks based out of Singapore, along with DBS Group Holdings Ltd (SGX: D05) and Oversea-Chinese Banking Corp Limited (SGX: O39).

The company has recently announced its 2019 first-quarter earnings update. Here are four positive things that I think investors should know about its results. But first, let’s run through the company’s numbers.

The results

Here’s a quick summary of some key financial metrics.

Source: UOB’s Result Presentation

Overall, we can see that most metrics improved on a year-on-year basis. But there are more to these numbers. First of all, total income grew 8% year-on-year to S$ 2.4 billion as a result of higher net interest income, as well as non- interest income. In particular, interest income grew 8% year-on-year to S$1.6 billion due to broad-based loan growth.

Secondly, both customers’ loans and deposits were both up by 12%, as compared to last year. Thirdly, annualised return on equity (ROE) improved to 11.4% from 11.0% a year ago.

Last but not least, UOB maintained an extremely sound capital position as of 31 March 2019. Its Common Equity Tier 1 capital adequacy ratio (CAR), Tier 1 CAR and Total CAR as at 31 March 2019, were 13.9%, 14.9% and 17.0% respectively. These ratios were well above the respective regulatory requirement of 6.5%, 8% and 10%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Lawrence Nga doesn’t own shares in any companies mentioned. Motley Fool has recommendations for DBS Group Ltd, Oversea-Chinese Banking Corp Limited and United Overseas Bank Ltd.