To The Moon

🌟🌟🌟Singapore's UOB $UOB(U11.SI)$  often flies under the radar but a closer look reveals a bank that combines defensive stability, measurable growth and an undervalued share price.  Here is why UOB deserves a top spot on your watch list.

Outperformance Backed By Rock Solid Results 

UOB delivered SGD 1.5 billion in net profit in Q1 2025, matching last year's figure despite a challenging backdrop.  UOB's management highlighted record fee income.  This can be attributed to its wealth management and treasury services, which helped to offset against slight margin pressures.  This broad based resilience shows UOB' s diversified revenue engine firing on all cylinders.

Robust Loan and Fee Growth 

Loans grew 6% year over year in Q1 2025, outpacing its peers and reflecting strong demand across corporate and retail segments.  In contrast DBS $DBS Group Holdings(D05.SI)$  was 0.4% and OCBC $ocbc bank(O39.SI)$  was 2.4%.   This is due to the acquisition of Citi's South East Asia retail business. 

Net fee income jumped 20% year over year to a new high, underscoring rising wealth advisory and transaction banking volumes.  With Asia's consumption and capex still gaining steam, UOB is well positioned to ride the next wave of loan growth. 

Conservative Valuation with Lucrative Upside 

With shares trading at SGD 36.12, the average Target price is SGD 36.50 according to Tipranks.  With Price/Book ratio at 1.1 times, UOB offers great value for money.  In contrast DBS trades at P/B ratio of 1.7 times and OCBC has a P/B ratio of 1.2 times. 

UOB also has a good ROE at 14% compared to DBS  ROE of 18% and OCBC at 13.7%.

Sustainability and Regional Expansion

UOB has grown its sustainability finance portfolio to SGD 58 billion, committing to net zero financing by 2050.  It has carved out  a leadership role in Green bonds and ESG linked loans.  Meanwhile the integration of Citi's South East Asia retail network adds scale and cross selling opportunities in fast growing markets like Vietnam and Thailand.  This dual focus on ESG and regional reach underpins UOB's long term franchise value.

Great Dividends 

UOB's current dividend yield is 4.98% paid semi annually.  The next dividend is due in August. 

The Bottom Line

Quality banks rarely trade at a discount but UOB is an exception.  Its blend of rock solid balance sheet strength, diversified growth engines and compelling valuations makes UOB a high conviction value pick. 

For investors seeking great dividends with capital appreciation, buying UOB shares when it is down, is a great move.  

Concluding Thoughts 

I am a long term investor of UOB and really pleased with its performance as I am up 53%.  I love its nice and juicy dividends while waiting for capital growth. 

Go Long Go Strong Go UOB🚀🚀🚀🌛🌛🌛💰💰💰🇸🇬🇸🇬🇸🇬

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