Singapore, Jan 22, 2026, 14:49 SGT — Regular session
- UOB shares outperform in Thursday trade in Singapore
- Broker upgrade and capital actions keep the bank in focus
- Investors look to earnings guidance as rate bets shift
United Overseas Bank’s shares were up 2.0% at S$37.52 by 2:39 p.m. in Singapore on Thursday, extending gains that earlier took the stock close to its recent highs. 1
The move matters now because bank stocks are sliding into earnings season with investors trying to price a different rates backdrop. When funding costs stop rising, the lift from higher loan yields can fade fast.
For UOB, the next test is whether it can defend net interest margin — the spread between what it earns on loans and what it pays on deposits — while keeping loan growth steady. Traders also track provisions, cash set aside for bad loans, because that can swing quarterly earnings.
Talk on desks has been about positioning more than any single headline. Still, fresh broker research has helped pull buyers back into a stock that had been moving sideways for weeks.
Macquarie analyst Jayden Vantarakis upgraded UOB to “outperform” in a Wednesday note and lifted his target price to S$41, calling it a “relative-value catch up play” as headwinds ease into earnings season. He wrote that lower rates were a “double-edged sword” for 2026 revenue, while pointing to firmer lending data and a path for provisions to normalise after one-offs. 2
A stock exchange filing on Wednesday also showed UOB bought back 38,000 shares on Jan. 20 for about S$1.4 million, cancelling the shares the same day. 3
In a separate funding update dated Jan. 21, UOB said its Sydney branch priced two Australian dollar senior unsecured note tranches due 2031: a A$750 million floating-rate deal at three-month BBSW plus 0.72% and a A$1.25 billion fixed-rate note paying 5.023%. BBSW is an Australian money-market benchmark rate.
But the setup can flip. Faster or deeper rate cuts than investors expect would squeeze lending spreads, while a turn in asset quality would push provisions higher and blunt any valuation rerating.
The other uncertainty is fees. Non-interest income — wealth fees, cards and markets revenue — can swing sharply quarter to quarter, and it often decides whether a bank beats or misses estimates when margins are tight.
UOB’s investor calendar shows it is scheduled to report FY25/4Q25 results on Feb. 24, with the bank flagging the date as indicative. 4
That print is the next hard catalyst. Investors will be watching for management’s margin and credit-cost assumptions for 2026, and whether capital returns stay on track as funding and growth conditions reset.
