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UOB to end the year with a 4.5% loan growth
Pushing net interest income to expand.
UOB can expect its net interest income to expand in the coming quarters as it records higher loan growth.
According to RHB, this will come as net interest margin widen is projected to go up to 1.76%, ahead of the anticipated US Federal Reserve rate hike.
For the past quarter, UOB's lending rose 1.5%, mainly driven by loans to the manufacturing sector climbing 8% QoQ.
"Management said loans could have expanded faster if UOB had granted more loans at lower interest rates – the bank had rejected loans in Q1 due to low-interest rates," RHB noted.
Nevertheless, RHB expects UOB's loan growth to climb 4.5% this year.
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