In today’s briefing:
- SIA Placement Lockup – Time for Another Trim of Its US$7bn Stake
- UOB – Net Profit Down 1.5% YoY, Credit Costs +126% YoY, Citi Costs ~5% of Profit, Expect Worsening
SIA Placement Lockup – Time for Another Trim of Its US$7bn Stake
- Temasek raised around US$300m via its secondary selldown in Singapore Airlines (SIA SP) in Jun 2023. The lockup from that placement will expire soon.
- Temasek still owns over 50% of SIA and hence, any selldown might not come before SIA reports its 1H23/24 results in mid-Nov 2023.
- In this note, we talk about the placement lockup dynamics.
UOB – Net Profit Down 1.5% YoY, Credit Costs +126% YoY, Citi Costs ~5% of Profit, Expect Worsening
- UOB (UOB SP) just released their 3Q23 results, with their IR documents attached below. Our interpretation of their numbers is less positive than their own presentation.
- Credit growth is faltering, with worsening NIM in QoQ, and with what appears to be topping out net interest income. Citi integration costs remain an issue.
- Underlying credit metrics with worse recoveries and worse new NPAs are not positive, nor is the 126% rise YoY in credit costs in 3Q23. Will this improve in 4Q23?
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