UOB

UOB: At its annual corporate access event, UOB Thailand was highlighted as the key component to the group's regional strategy, with significant room for improvement if the bank can achieve a 12% ROE on the back of 5% market share and a 50% cost-to-income ratio. Over the past seven and a half years, UOB Thai has made significant strides with respect to asset quality but the struggle has been on the revenue and cost line. Although there has been some progress in recent quarters, the ROA and profile is still poor at 0.8% and 8% respectively, being a drag on the group. According to CLSA, an ROE of 12% on 5% market share and 50% cost-to-income ratio is unlikely to be achieved within its forecast time horizon. House believes a more likely execution timeframe to be five-to-seven years. CLSA reiterates an OUTPERFORM with TP $24.20.