United Overseas Bank (UOVEY) AI Stock Analysis

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United Overseas Bank

(OTC:UOVEY)

69Neutral

United Overseas Bank shows strong financial performance with notable revenue growth and profitability. Its balance sheet is robust, particularly with zero debt, though cash flow volatility is a concern. The technical indicators are weak, highlighting a potential bearish trend in the short term. However, a reasonable valuation with a low P/E ratio and a healthy dividend yield enhances its attractiveness, balancing the overall assessment.

United Overseas Bank (UOVEY) vs. S&P 500 (SPY)

Market Cap

$45.18B

Dividend Yield4.77%

Average Volume (3M)4.33K

Price to Earnings (P/E)10.2

Beta (1Y)0.46

Revenue Growth6.23%

EPS Growth6.46%

CountryUS

Employees32,071

SectorFinancial

Sector Strength82

IndustryBanks - Regional

Share Statistics

EPS (TTM)5.41

Shares Outstanding842,436,650

10 Day Avg. Volume0

30 Day Avg. Volume4,326

Financial Highlights & Ratios

PEG Ratio1.58

Price to Book (P/B)N/A

Price to Sales (P/S)4.29

Price to Cash Flow (P/CF)N/A

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$30.29

Price Target Upside-44.23% Downside

Rating ConsensusModerate Buy

Number of Analyst Covering0

United Overseas Bank Business Overview & Revenue Model

Company DescriptionUnited Overseas Bank (UOVEY) is a leading financial institution headquartered in Singapore with a significant presence across Asia. It operates across several sectors including retail banking, wholesale banking, global markets, and wealth management. UOVEY offers a comprehensive range of financial products and services such as personal and corporate banking, investment banking, insurance, and asset management. The bank is known for its commitment to customer service and innovation, striving to provide tailored solutions to meet the diverse needs of its clients.

How the Company Makes MoneyUnited Overseas Bank (UOVEY) generates revenue through several key streams. The primary source of income is interest income from loans and advances, which includes personal loans, mortgages, and corporate loans. Non-interest income is another significant revenue stream, derived from service fees, transaction charges, and investment banking services. In addition, UOVEY earns revenue from trading and investment activities within its global markets division. The bank also benefits from strategic partnerships and collaborations that enhance its service offerings and customer reach. Overall, UOVEY's earnings are bolstered by its diversified financial services, strong regional presence, and focus on innovation and customer-centric banking solutions.

United Overseas Bank Financial Statement Overview

Summary

United Overseas Bank has demonstrated strong revenue growth and improved profitability. The balance sheet shows financial stability with zero debt, though rising liabilities need attention. However, cash flow volatility, especially negative operating and free cash flow, is a concern for liquidity.

Income Statement

Very Positive

United Overseas Bank has shown strong revenue growth, increasing from $13.07 billion in 2020 to $14.28 billion in 2024. Net profit margins have also improved, rising from 22.29% in 2020 to 42.34% in 2024, indicating enhanced profitability. The revenue growth rate from 2023 to 2024 was a substantial 9.76%, showcasing robust business expansion. However, EBIT margins were not calculable for 2024, as EBIT was reported as zero, which could indicate changes in operational cost structure or reporting practices.

Balance Sheet

Positive

The balance sheet reflects a solid equity base with stockholders' equity increasing from $38.53 billion in 2020 to $49.73 billion in 2024. The equity ratio has improved slightly, indicating greater financial stability. The debt-to-equity ratio dropped to zero in 2024 due to zero total debt, reflecting a strong deleveraging position, which minimizes financial risks. Return on equity improved to 12.15% in 2024, showing efficient use of equity capital. However, the significant rise in liabilities must be managed carefully.

Cash Flow

Positive

The cash flow statement shows volatility, particularly in operating cash flow, which turned negative in 2024, potentially impacting liquidity. Free cash flow also turned negative, a worrying sign, as it reflects a dip from the positive free cash flow seen in previous years. The operating cash flow to net income ratio is negative, indicating potential cash generation issues from operations. A careful review of cash flow management practices is advisable to ensure long-term financial health.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
12.32B	14.28B	13.01B	65.00M	9.79B	13.07B
	Gross Profit
13.96B	14.28B	13.93B	65.00M	9.79B	13.07B
	EBIT
4.95B	0.00	9.10B	10.29B	4.92B	3.29B
	EBITDA
92.00M	0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
4.08B	6.04B	5.71B	4.57B	4.08B	2.92B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.60B	76.01B	87.44B	84.83B	69.88B	31.36B
	Total Assets
388.09B	537.66B	523.52B	504.26B	459.32B	431.81B
	Total Debt
14.93B	0.00	37.18B	41.63B	35.21B	48.15B
	Net Debt
-4.68B	-76.01B	-80.82B	-37.04B	-34.67B	-23.49B
	Total Liabilities
350.28B	487.71B	477.05B	460.65B	416.46B	393.06B
	Stockholders Equity
37.62B	49.73B	46.23B	43.37B	42.63B	38.52B
Cash Flow		Free Cash Flow
7.21B	-15.72B	9.89B	9.40B	-3.36B	5.44B
	Operating Cash Flow
7.77B	-14.85B	10.77B	10.10B	-2.81B	6.00B
	Investing Cash Flow
-31.62B	-771.00M	-645.00M	-3.71B	-440.00M	-11.31B
	Financing Cash Flow
43.05B	1.13B	-7.69B	5.74B	3.02B	16.61B

United Overseas Bank Technical Analysis

Technical Analysis Sentiment

Positive

Last Price54.31

Price Trends

50DMA

55.23

Negative

100DMA

54.79

Negative

200DMA

51.75

Positive

Market Momentum

MACD

-0.85

Negative

RSI

53.76

Neutral

STOCH

99.99

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For UOVEY, the sentiment is Positive. The current price of 54.31 is above the 20-day moving average (MA) of 53.06, below the 50-day MA of 55.23, and above the 200-day MA of 51.75, indicating a neutral trend. The MACD of -0.85 indicates Negative momentum. The RSI at 53.76 is Neutral, neither overbought nor oversold. The STOCH value of 99.99 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UOVEY.

United Overseas Bank Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ITUB	76 Outperform	$58.94B	9.09	20.84%	5.93%	-7.01%	15.18%
LYG	76 Outperform	$56.95B	12.04	9.95%	3.76%	36.29%	-19.79%
USB	71 Outperform	$59.52B	10.09	11.51%	5.10%	2.75%	34.00%
PNC	70 Outperform	$61.47B	11.30	11.15%	4.11%	3.34%	19.01%
UOVEY	69 Neutral	$45.18B	10.20	13.43%	4.77%	6.23%	6.46%
Sector *	63 Neutral	$12.06B	9.31	8.10%	79.51%	12.80%	-4.67%
MFG	62 Neutral	$58.43B	10.53	8.56%	2.38%	13.63%	27.77%

* Financial Sector Average

Performance Comparison

UOVEY

United Overseas Bank

54.31

11.14

25.80%

ITUB

Itau Unibanco

5.98

0.73

13.90%

LYG

Lloyds Banking

3.91

1.49

61.57%

MFG

Mizuho Financial

4.87

0.96

24.55%

PNC

PNC Financial

157.41

5.01

3.29%

USB

US Bancorp

39.51

-0.24

-0.60%

United Overseas Bank Earnings Call Summary

Earnings Call Date: Feb 18, 2025 | % Change Since: -5.73% | Next Earnings Date: Jul 30, 2025

Earnings Call Sentiment Positive

The earnings call highlighted UOB's strong quarterly performance with record net profit and stable asset quality, driven by growth in ASEAN markets and successful integration of Citi's assets. However, there were challenges related to higher specific allowances due to integration issues in Thailand, which are expected to normalize soon.

Highlights

Record-High Quarter Performance

UOB achieved a record-high quarter with a net profit of SGD 1.6 billion, up 16% year-on-year, driven by broad-based growth across all business segments and key markets in ASEAN.

Strong Fee and Trading Income

Fee income reached a new high of SGD 630 million, supported by healthy trade and wealth demand. Trading and investment income was very strong at SGD 709 million.

Stable Asset Quality and Capital Position

Asset quality remains stable with NPL ratio unchanged at 1.5%. Capital position is resilient with CET1 at 15.5% and NSFR at 116%.

Successful Integration of Citi Acquisition

Synergies from the Citi acquisition have kicked in, contributing to growth in customer base and CASA penetration across key markets.

Robust ASEAN Growth and Opportunities

Highlighted the strong growth potential in ASEAN, benefiting from supply chain shifts, digital economy, and green economy sectors.

Lowlights

Higher Specific Allowances Due to Thai Integration

Higher specific allowance this quarter was mainly from Thailand operational merger issues, which are expected to normalize in the next two quarters.

Credit Cost Increase

Total credit cost on loans rose to 34 basis points, mainly due to integration issues in Thailand and prudent collateral markdowns in the U.S. and Hong Kong.

Company Guidance

During the UOB Q3 2024 earnings call, the executive team provided guidance indicating strong performance and positive future outlook. They reported a record-high net profit of SGD 1.6 billion, representing a 16% year-on-year increase. The bank anticipates high single-digit loan growth, driven by ASEAN regional resilience and trade opportunities. Fee income is expected to grow double-digit, bolstered by cards, wealth, and trade-related fees. UOB aims for a cost-to-income ratio between 41% and 42% and expects total credit costs to remain within 25 to 30 basis points. The bank's asset quality is stable, with a non-performing loan (NPL) ratio of 1.5%, and capital position remains robust with a CET1 ratio of 15.5%. The executives also discussed potential capital management strategies, including share buybacks or increased dividends, to optimize excess capital.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.