UOB's Continued Higher Nonperforming Asset Formation Seen Negative
Dow Jones
Aug 07
0226 GMT - United Overseas Bank's continued higher nonperforming asset formation seems negative to Citi analyst Tan Yong Hong, who affirms Citi's downside catalyst watch on the Singapore lender. UOB's nonperforming asset formation was at 1% of its loans, which is similar to the levels during 3Q 2025 when UOB booked pre-emptive general provisions, he says. Elevated nonperforming assets could contribute to the need for future general provisions top-ups, says Tan. Citi retains its neutral rating and 41.80 Singapore dollar target price. Shares drop 2.0% to S$42.69.
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