Its net interest income grew 2.1% in Q1.
UOB outperformed its peers in sequential loan growth for three consecutive quarters, RHB said.
According to the brokerage firm, UOB's Q1 net interest income growth of 2.1% QoQ was higher than its two competitors’ average of 1.1%.
"This follows the preceding two quarters, whereby UOB had also outperformed its peers in sequential net interest income growth," RHB said.
The brokerage firm also noted that in earlier briefings, UOB management said that their strategy was not to expand loans at the expense of net interest margins (NIMs).
"We believe this could be one reason for its outperformance," RHB stated.
Both DBS and UOB recorded 1Q17 NIMs that were 3-4 bps wider QoQ. RHB expects all three banks to record 2017 NIMs wider than their respective 1Q17 NIMs, on the back of further hikes in the Fed Funds Rate (FFR) driving SIBOR higher. For UOB, we are forecasting 2017 NIM of 1.76%, 3 bps higher than its 1Q17’s 1.73%.
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