$UNITED OVERSEAS BANK LIMITED(U11.SI)$ UOB’s third-quarter results were strong as net interest margin expanded by more than we had expected, and credit cost was lower as asset quality remained prudent. While both improvements in performance were in line with our expectation, the magnitude of the trends was better than anticipated. Net profit after tax was up 26% quarter on quarter, or 34% higher against the same period last year. We are raising our fair value estimate slightly to SGD 40 per share from SGD 39 per share and have made changes to our forecasts to account for higher net interest margins and lower credit cost in 2022, offset by an acceleration of staff costs.