Singapore, Jan 28, 2026, 14:49 SGT — Regular session
- UOB shares slipped roughly 0.3% in afternoon trading, underperforming DBS as OCBC also dipped
- JPMorgan holds onto its S$34 target but flags asset-quality risks following UOB’s steep rally
- Attention turns to the Fed’s rate decision this week, with UOB set to release full-year results on Feb 24
United Overseas Bank Limited (UOB) (SGX:U11) shares slipped roughly 0.3% to S$38.35 by 2:40 p.m. local time on Wednesday, while the Straits Times Index dropped around 0.5%. 1
This matters because UOB ranks among Singapore’s top three banks and holds significant weight in the benchmark index. When brokers shift their calls, flows can flip quickly, especially as earnings dates approach.
JPMorgan has downgraded UOB to “underweight,” signaling expectations that the stock will underperform its index, while maintaining a year-end 2026 target price of S$34. The bank pointed out it doesn’t foresee “asset quality issues fully cleared in 4Q2025,” despite UOB’s 13% gain so far this year. It also highlighted risks linked to Hong Kong and U.S. commercial real estate, alongside elevated credit costs in Thailand and tighter liquidity conditions in Indonesia. 2
The note came after a tough Monday, with UOB dropping 2.5% to S$38.50, pulling back from a record high close of S$39.50 hit late last week. Macquarie analyst Jayden Vantarakis highlighted inflows into Singapore, describing the city-state as a “safe-haven” in a recent note. 3
Shares of other Singapore banks showed a mixed picture on Wednesday. DBS Group edged higher by 0.2% to S$59.36, but OCBC fell 0.6% to S$21.29. 4
Macro concerns remain loud in the background as investors eye the U.S. Federal Reserve’s rate decision this week. Vishnu Varathan of Mizuho Securities predicts the Fed will hold rates steady. 5
This matters for banks since rates directly influence the net interest margin — the gap between what lenders earn on loans and pay on deposits. When margins stop expanding, traders shift focus to credit costs and asset quality, ramping up the debate.
UOB is set to unveil its full-year 2025 financial results on Feb. 24, ahead of market open, according to a Singapore Exchange filing. Investors will be focused on updates regarding loan growth, provisions—funds reserved for potential bad debts—and any shifts in capital return policies. 6
The downside risk remains. If management signals new trouble in Hong Kong exposures, U.S. commercial real estate, or continues to caution on Thailand credit costs, the stock could come under further valuation pressure after a strong start to the year.
Coming up next: the Fed decision and UOB’s Feb. 24 results, released just before Singapore’s open. For those who bought into the rally, comments on asset quality could be just as important as the headline profit number.
