Numbers in S$ million unless stated otherwise.
| Full Year Ending | 31 Dec 2023 | 31 Dec 2022 | % Change |
|---|---|---|---|
| Total Income | 13,932 | 11,575 | 20.3 |
| Profit Before Tax | 7,303 | 6,050 | 20.7 |
| Net Profit | 5,711 | 4,573 | 24.9 |
| EPS (S$) | 3.34 | 2.69 | 24.2 |
| DPS (S$) | 1.70 | 1.35 | 25.9 |
FY2023 total income hit S$13.9B due to higher net interest income, record card fees and strong performance in treasury customer flows, trading and investment activities. NII up 16.0% y/y to S$9.68B. NIM up 23 bps y/y, but down 7 bps q/q to 2.09%. Fee income up 4.3% to S$2.24B, of which credit card fees grew 66% y/y and wealth management income grew 13% y/y. Trading and investment income surged 204% y/y to S$1.69B. NPL ratio remained stable at 1.5%. FY2023 core ROE up 2.3% y/y to 14.2%. A final dividend of 85 cents per share was declared, Ex Date: 25 Apr 2024. This brings FY2023 total dividend to S$1.70 (FY22: S$1.35).
UOB completed integration of Citi's Malaysia and Indonesia units. Integration of Citi's Thailand unit is slated to complete in Q2 2024. Management projects low single-digit loan growth and double-digit fee growth in 2024.
My Thoughts
UOB has logged a stellar FY2023 performance, similar to DBS. A higher final dividend was declared, which should bring cheer to many shareholders. UOB's tie-up to Taylor Swift and Ed Sheeran concert gigs boosted its card income. Unfortunately, the share price has run up quite a bit, given the U.S. Fed has pushed back on cutting interest rate in the near term, which is a boon for the banks. Will continue to monitor for price retracement, which is likely to occur when the Fed starts trimming interest rate.
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