UOB has been known for its conservative growth but we believe the market may have overlooked the lack of its fee income differentiation as well as Greater China presence. We believe over time, regionalisation beyond ASEAN would need to improve to prompt a re-rating for the bank. In addition, a stronger traction in non-interest income away from loan-related activities could add a re-rating sentiment. UOB is more Singapore-centric compared to peers with 53% and 44% of its loans and deposits being S$ based respectively. While this is not necessarily a weakness, it would remain a point of contention when peers are able to reap better contribution from overseas operations. These factors justify our HOLD rating.