Analysts Cautious on UOB Despite Normalising Credit Costs
Source: theedgesingapore.com
- Analysts keep a cautious view on UOB stock even as the bank normalises its credit costs after heavy provisions.
- UOB trims its 2026 fee income growth to high single digits due to conservative loan targets and economic uncertainty.
- The bank holds steady on low single-digit loan growth and credit costs of 25 to 30 basis points for 2026.
Analysts stay wary on United Overseas Bank (UOB) shares despite improving credit costs, as the lender adjusts its outlook amid macroeconomic pressures. This reflects broader caution in banking amid US tariffs and regional trade shifts. It matters because UOB's performance signals health in Asean lending and investor confidence in Singapore's major banks.