To The Moon

$UNITED OVERSEAS BANK LIMITED(U11.SI)$ UOB's share price has jumped 23% since the beginning of 2022.  The question on many investors' mind -  Do we Buy, Sell or Hold UOB?

Let's do a deep dive into UOB.  The Bank's net profit surged 48% year on year to SGD1.02 Billion.  UOB has declared a final dividend of 60 cents per share, up from 39 cents a year ago due to the cap by MAS on dividend payout.  So the total dividend for last year would be 1.20.

UOB has also announced that it has won the bid to buy out Citigroup's SGD5 Billion Consumer Business in Indonesia, Malaysia, Thailand and Vietnam.  This is UOB's biggest purchase in the last 20 years.  In fact UOB is intent to grow its consumer lending business as much as possible.  This means that there will be a SGD 1 billion profit after the buyout.

Because of this, UOB will grow exponentially in South East Asia.    

According to 5 Financial Analysts from DBS Research, OCBC Investment, Maybank Research, Phillip Securities and CGS CIMB, UOB is a BUY with target price ranging from 35.40 to 36.69.

With interest rates rising in future, UOB's Net Interest Income is set to grow further too. 

I intend to hold my UOB shares in my long term portfolio as I believe that UOB has shown that it will be a very stable and reliable investment.  UOB will continue to pay steady and reliable dividends in the years to come. 

Go Long, Go Strong, Go UOB

@TigerStars