UOB share price to sink or swim with COVID-19?
Sometimes, reality defies logic. By right, bank stocks should have crashed with the onset of the COVID-19 pandemic and the unfolding oil crisis. But DBS, OCBC and UOB share price had been quite resilient amid the unprecedented economic challenges. Bank counters had not collapsed like what they did during the Global Financial Crisis in 2008. Perhaps the massive stimulus packages by US Federal Reserves had helped to restore market confidence. Where will UOB share price go from here?
In terms of first quarter financial results, UOB lost out to DBS but managed to beat OCBC comprehensively. Net earnings amounted to $855 million, a decline of 19% as compared to Q1FY2019. Overall, UOB’s decline was much better than DBS (-29%) and OCBC (-43%). Despite so, the outlook for UOB share price looks pretty grim as the bank navigates through the storm.
Total income for UOB remained stable at $2.41 billion even though interest rates had plummeted to abysmal levels. Non-performing loan ratio also remained stable …