Singapore, Feb 6, 2026, 15:15 SGT — Regular session
- UOB was down about 0.4% at S$38.48 in afternoon trade.
- Analysts are watching whether easing funding pressure can stabilise bank margins into 2026.
- UOB’s full-year results are due on Feb. 24, with DBS reporting first on Feb. 9.
United Overseas Bank Ltd (UOBH.SI) shares slipped about 0.4% to S$38.48 by mid-afternoon on Friday, after trading between S$38.05 and S$38.60. The stock is near its 52-week high of S$39.50, but risk appetite weakened across Asia after a tech-led selloff on Wall Street. (Investing)
The move comes as Singapore’s banks head into a February run of earnings, where small shifts in net interest margin — the gap between what a lender earns on loans and pays on deposits — can swing dividend expectations and valuations. Analysts have said signs of “margin relief” are starting to show, but the sector still lacks an obvious next leg of growth. (The Business Times)
In a Feb. 4 preview note, Maybank Research analyst Thilan Wickramasinghe said the margin squeeze that weighed on earnings over the past year may be easing as funding pressures cool. He kept a “hold” call on UOB, with a target price of S$36.80, below where the stock traded on Friday. (Maybank Ke)
Singapore’s Straits Times Index was down about 0.7% by the midday break, The Business Times reported, with DBS down about 0.7% and OCBC off roughly 0.9% at the same point. (The Business Times)
Wickramasinghe expects a bounce in UOB’s quarterly earnings after what he described as a low base in the third quarter, when credit costs climbed. He pencilled in fourth-quarter earnings of S$1.35 billion to S$1.43 billion, versus S$440 million in the prior quarter, the note showed.
In his view, “SORA contraction is stabilizing” — a nod to the Singapore Overnight Rate Average, a key benchmark for local borrowing costs. He said the hit eased to 27 basis points in the fourth quarter from about 60 basis points in the third; a basis point is one-hundredth of a percentage point.
Maybank also pointed to firmer loan growth and banks cutting deposit rates as factors that could slow net interest margin compression. The note estimated system loan growth of about 5% in 2025, helped by construction, mortgage and small business lending, and said that should help keep net interest income steadier.
Fees are a wilder card. The note flagged seasonally softer wealth management fees in the fourth quarter, but said markets-related income and loan fees could offer support, while UOB could see improved credit card fees after a weak third quarter linked to high reward redemptions in Thailand.
But the downside case is still there. Maybank said UOB’s credit costs surprised higher in the third quarter on pre-emptive provisions tied to commercial real estate exposure, and warned credit costs could remain elevated even if they ease quarter-on-quarter. It also flagged UOB as an outlier on costs as the bank invests in upgrading its retail platform.
The next catalyst is the earnings calendar. DBS is due to report on Feb. 9, with UOB scheduled for Feb. 24 and OCBC for Feb. 25, according to recent analyst previews.
UOB has said it will release its full-year 2025 financial results on Feb. 24 before trading begins. Investors will be watching for dividend signals and guidance that shifts from margin talk to the underlying trajectory of net interest income and credit costs. (SGX Links)
