Singapore, January 27, 2026, 14:50 (SGT) — Regular session.
United Overseas Bank Ltd (UOB) (SGX:U11) shares dipped 0.3% to S$38.40 by 2:48 pm in Singapore, underperforming its local peers as the market climbed. DBS Group advanced around 1.5%, and OCBC rose 1.3%, while the FTSE Straits Times Index gained about 1%. UOB is currently valued at roughly 11 times trailing earnings, with a dividend yield near 4.6%. (Google)
All eyes are on the Monetary Authority of Singapore’s policy review this Thursday. Most economists surveyed by Reuters predict no change to current settings. Edward Lee, chief economist at Standard Chartered, said there’s “no urgency to act” right now. But Bank of America economists warn MAS might tighten policy at this review if inflation shows signs of picking up. Instead of adjusting interest rates, MAS steers monetary conditions by managing the Singapore dollar within a trade-weighted policy band. (Reuters)
UOB is set to report its full-year 2025 financial results on Feb. 24, with the announcement coming before the market opens, according to an SGX filing. Investors will focus on any shifts in the bank’s approach to credit costs—the reserves for bad loans—and its fee income, following a turbulent year across the region. (SGX Links)
The stock is still reacting after Monday’s drop in Singapore’s banking trio, which dragged the Straits Times Index down 0.6%. UOB took the biggest hit, closing Jan. 26 down 2.5% at S$38.50, The Straits Times reported.
On Jan. 25, JPMorgan downgraded UOB from “neutral” to “underweight,” keeping its target price steady at S$34, according to the Business Times. This followed a 5% jump in UOB shares on Jan. 23, when the stock closed at S$39.50 before starting to pull back. Meanwhile, Macquarie analyst Jayden Vantarakis upgraded UOB to “outperform,” setting a target of S$41 and pointing to wealth inflows driven by Singapore’s “safe-haven” status. (The Business Times)
Analysts Tay Wee Kuang and Lim Siew Khee at CGS International forecast UOB’s net profit for Q4 2025 to hit about S$1.28 billion, marking a 16.7% drop year-on-year. They linked this to a tougher comparison base following a one-off deferred tax expense in Q4 2024. The duo also pointed to softer wealth management and loan-related fees. Meanwhile, they expect credit costs to ease by 28 basis points from the previous quarter — with a basis point representing 0.01 percentage point. They warned of downside risks from a “weaker economic outlook for ASEAN” and potential extra provisioning tied to UOB’s exposure in Greater China’s commercial property sector. (Asian Banking & Finance)
UOB moved on wholesale funding, pricing A$2 billion ($1.39 billion) of senior unsecured notes in two tranches, according to FinanceAsia. This move highlights the bank’s ability to tap offshore debt markets while broadening its funding sources. (FinanceAsia)
The share price’s next move could hinge on whether UOB manages to steer clear of another surge in provisions and maintain lending margins amid shifting rates. In November, the bank projected its 2026 net interest margin—the gap between loan earnings and deposit costs—would drop to 1.75%-1.80%, following a hefty S$1.36 billion in credit allowances booked in Q3. (Reuters)
Markets will get a near-term cue on Jan. 29, when MAS releases its quarterly monetary policy statement. UOB’s associate economist Jester Koh said there’s “little urgency to act now,” though some analysts expect a possible hawkish shift. Attention for UOB shares then turns to Feb. 24, the date set for its FY25/4Q25 earnings report. (The Straits Times)
