UOB 3Q Wealth Fees Likely Grew on Quarter

Dow Jones10-16

0827 GMT - United Overseas Bank's 3Q wealth fees likely grew from the preceding quarter thanks to a recovery in card fees from a low base and recognition of loan-related fees deferred from 2Q, says Jefferies' Joanna Cheah and Wei Han Ang in a note. Its peers DBS Group and Oversea-Chinese Banking Corp. likely faced tougher comparisons after exceptionally strong 2Q wealth activity, they say. Softer equity markets likely weighed on DBS's and OCBC's transaction-driven fees despite resilient underlying inflows. Meanwhile, the three banks' asset quality likely remained broadly resilient, they say. In particular, UOB's new nonperforming assets likely eased from 2Q levels. "DBS remains our preferred quality franchise, while UOB offers valuation upside potential and greater interest rate sensitivity," the analysts say.

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