Singapore, Jan 26, 2026, 14:51 SGT — Regular session
- UOB shares fell 2.7% to S$38.45 in afternoon trading, underperforming other local banks
- JPMorgan downgraded UOB to “underweight” but left its target price steady at S$34
- Attention shifts to UOB’s full-year results for Feb 24
United Overseas Bank Ltd (UOB) shares dropped on Monday, falling 2.66% to S$38.45 by 2:48 p.m. local time, after touching a high of S$39.20 earlier. The Straits Times Index in Singapore dipped 0.69%. DBS shares slipped 0.8%, while OCBC dropped 1.22%. 1
The pullback follows UOB’s record close on Friday, but selling pressure emerged after JPMorgan downgraded the stock, The Business Times reported. JPMorgan shifted its rating from “neutral” to “underweight,” signaling expectations that the stock will underperform its peers, while maintaining a target price of S$34, the report added. 2
JPMorgan told The Edge Singapore it doesn’t expect asset quality concerns to be fully resolved by 4Q2025. It also ranked UOB behind DBS and OCBC in a new “pecking order.” The bank pointed to risks from commercial real estate, rising credit costs in Thailand, and tighter liquidity in Indonesia as reasons UOB’s shares could lose steam after a strong rally. 3
At the moment, this appears more like profit-taking disguised as something else. UOB had been a top performer among Singapore’s banks, and Monday’s dip is cutting back on those gains—though it’s far from wiping them out.
Traders are keeping an eye on whether the selling spreads across the sector. Singapore’s major lenders have been trading more in unison recently, and because UOB carries significant weight, any sharp move there can quickly impact the benchmark.
The downside scenario is clear. If loan demand weakens, funding costs hit harder than anticipated, or provisions climb once more, the stock could slide further—even without fresh headlines.
The next major trigger is coming up fast: UOB is set to report its full-year 2025 results on Feb 24, ahead of market open, according to a filing with the Singapore Exchange. 4
Investors will focus on any changes in comments about asset quality, updates on credit cost forecasts, and management’s stance on capital and shareholder returns.
For now, the tape speaks for itself — and if broker downgrades extend past JPMorgan, it might signal more than a brief breather after a record run, potentially marking the start of a broader reset ahead of earnings.
