UOB

UOB: Philip Securities says the bank is likely to continue to deliver strong results for the next few quarters even as the macro economy remains uncertain. Expects loans growth to be moderate, but positive, mitigating the continued pressure on NIMs. Forecasts fees and commission to grow rapidly, driven by strong transaction banking and wealth management performances. Geographically, contributions from UOB's overseas subsidiaries are expected to increase. Tips UOB may also benefit from an improvement in the China economy, which may drive higher trade volumes and banking services between China and Asean, in which UOB has strong capabilities. The house raises TP to $21.00 from $18.00 after increasing its forward P/B multiple to 1.35X and rolling forward to FY13 forecasts. Keeps an Accumulate call, continuing to prefer UOB over DBS and OCBC . UOB is down 0.8% at $19.69.