United Overseas Bank's integrated Asean strategy could catalyze fee and credit growth, says Thilan Wickramasinghe, Maybank Securities head of research.
The U.S.-China trade war is increasing corporate shifts to the Asean region, he writes in a note. Unlike past multinational companies' relocations, which moved with their entrenched global banking relationships, the current group of relocators has fewer relationships, he adds.
"This gives UOB's integrated Asean platform an advantage." It could also help UOB diversify its loan book toward higher-quality credit in growth sectors, such as data centers and the digital economy, he adds.
Maybank raises UOB's target price to S$44.32 from S$38.75 while maintaining a buy rating. Shares are 0.3% higher at S$38.70.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.