UOB’s FY25 Audit: A 200-Basis Point Spread in a Season of "Vanishing Customers" |🦖EP1446

UOB’s FY25 Audit: A 200-Basis Point Spread in a Season of "Vanishing Customers" |🦖EP1446

I have been watching the local bank earnings reports roll in over the last week and something clicked for me regarding UOB that I felt compelled to share with our community of 6,000+ subscribers. While the mainstream headlines are busy celebrating a record fee income of $2.6 billion, I spent my evening digging into the footnotes of the wholesale credit provisions. There is a clear gap between the glossy narrative of a victory lap and the hard math of a 23 percent profit plunge.

It feels like a celebration. But here is the uncomfortable truth: that attractive dividend is currently sitting on an engine showing signs of stress. When we look at the yield spread, we see a risk premium of only 86 basis points. In my forensic model, that is a thin spread that doesn't quite offer the safety margin I usually look for.

If you are a dividend investor in your 50s holding UOB in your CPFIS or SRS as a "sleep-at-night" anchor, this analysis was made specifically for you. We need to look past the surface to see if management's current paranoia about credit defaults is a warning or a hidden strength. Take the time to work through the numbers yourself. Everything is laid out in the video below.

📺 YouTube: https://youtu.be/YVJ_bQ0siC0

📩 Substack: https://open.substack.com/pub/investingiguana/p/uobs-fy25-audit-a-200-basis-point?r=5enmf1&utm_campaign=post&utm_medium=web&showWelcomeOnShare=true