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Hot stock: UOB up 0.6% on better-than-expected Q4 results
UNITED Overseas Bank (UOB) rose 0.6 per cent in morning trade as the bank posted better-than-expected fourth quarter results on Friday.
The stock was up15 cents, or 0.64 per cent, at S$23.55 by 11.26 am. It had earlier hit S$23.58 a share.
UOB posted a 1.7 per cent increase in its net profit for the fourth quarter ended Dec 31, 2014 to S$786 million on the back of broad-based growth across core income streams. Analysts' estimates by Reuters were around S$759 million.
UOB's two bigger rivals DBS Group Holdings and OCBC Bank, which reported their results earlier in the week, missed analysts' expectations, in part due to sharply higher allowances set aside for doubtful loans.
UOB's total impairment charges in Q4 increased 19.9 per cent from an year ago to S$166 million, mainly due to higher individual impairment on loans as well as collective impairment set aside for loan growth.
DBS's total allowances rose 40 per cent in Q4 while OCBC more than doubled its allowances.