UOB

UOB: mkt watchers expect UOB to post biggest improvement in 2Q net profit out of all SG banks, mostly on back of improving asset quality. Net profit likely +27.7% yoy at $600m according to Dow Jones poll of 5 analysts. UOB likely to face similar pressures on interest margins as DBS, OCBC. UOB with highest loan loss coverage, should require lower provisions than peers. Nevertheless, UOB being historically conservative, could continue to raise loan loss coverage to prepare for the rainy day. Results due 10 Aug lunchtime.