UOB released its 3Q15 earnings this morning and reported net earnings of S$858m, down a marginal 1% YoY and +13% QoQ, but this is better than a Bloomberg poll of S$812m. Net Interest Income showed improvement, +7% YoY and +2% QoQ, to S$1235m, while Non-interest Income jumped 4% and 19% respectively to S$850m. Net Interest Margin improved YoY, but was flat QoQ at 1.77%.

On the fee income side, growth came from credit card and wealth management. Allowances for credit and other losses fell 1% YoY and rose 5% QoQ to S$160m, while NPL rose marginally from 1.2% in 3Q14 and 2Q15 to 1.3% this quarter. To commemorate its 80th anniversary, a one-off 20 cents dividend has been declared. We will update our estimates and provide more details after the analyst’s briefing later this morning. Do note that we have a BUY rating on the stock prior to the release of its results.

Source: OCBC Research - 30 Oct 2015