我i168
2022-06-30

$UNITED OVERSEAS BANK LIMITED(U11.SI)$....good level to add UOB?

I think so.

UOB and the other two banks $DBS GROUP HOLDINGS LTD(D05.SI)$$OVERSEA-CHINESE BANKING CORP(O39.SI)$have corrected quite a bit. In UOB case, close to 20%.

The rates hikes are considered positive to banks as their NII would rise with higher lending rates.

However economic slowdown or recession on the other side would affect bank's loan growth and NPLs.

Investors are worried. Rightfully.

In my view, SG banks are well capitalised and strong. The worries are warranted in the context of a global economic slowdown.

But I hold the view that the banks willbe doing just fine as they serve primarily the SEA and Greater China economies which will be still growing.

So I am comfortable adding bank positions at the current levels.

What about you?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Jlkc
    2022-07-01
    Jlkc
    You dont add based on graph huh? Your view can apply today, last month or next month. But the price may vary a lot
    • 我i168: 
      I do...but I lile to share perspectives rather than tactics. You’ll have to make your own decisions on your actions.
  • Woobenny
    2022-06-30
    Woobenny
    Will digital banking affect the conventional banks positively or negatively?
    • 我i168: 
      Will have to see how things pan out...anyway existing banks are not standing still, they’re working on digital banking / fintechs too
  • Ranchy
    2022-06-30
    Ranchy
    ok.. just added. but seem like will still drop
  • Tilon_Song
    2022-06-30
    Tilon_Song
    Seems like a 50 50 bet for me. The fed interest rates may benefits the banking sector but if too much bad debts due to high interest rates for debtors, then might continue to slip further down
  • lylyly10
    2022-06-30
    lylyly10
    prefer ocbc as its more undervalued!
  • snoopy123
    2022-07-01
    snoopy123
    wonder how will citi business contribute to UOB? [Doubt]

    https://www.straitstimes.com/business/banking/uob-to-buy-citis-consumer-business-in-4-asean-countries-for-about-49-billion

Leave a comment
1