0751 GMT - United Overseas Bank's higher provisions were prudent but came as an unwelcome surprise, according to Morningstar's Lorraine Tan. She notes that the bank hadn't previously signaled a need to raise provisions, which now bring its coverage ratio closer to peers at around 1%. While the additional allowances will weigh on UOB's full-year profit, Tan still expects return on equity to recover to 11% in 2026. UOB's lower projected 2026 net interest margin points to a weaker outlook, prompting Tan to cut her 2025-2029 average NIM forecast to 1.8% from 1.9%. She also trims her total dividend-per-share projections by 4%-6% on softer earnings expectations. Morningstar lowers its fair-value estimate for UOB to S$36.00 from S$38.00. Shares fall 0.4% to S$33.76. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

November 07, 2025 02:51 ET (07:51 GMT)

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