Part 6/8:

UOB also garners favor due to its regional presence in ASEAN, which offers some resilience against global headwinds by providing a relatively recession-proof growth narrative. Its valuation is similar, at about 1.3 times P/B, indicating potential for upside.

Sound Financial Position and Resilience

The banks' non-performing loans (NPLs) have improved, with problem loan ratios dropping from 1.5% to around 1.3–1.4%, signaling healthier asset quality. Experts believe this trend is likely to continue, with NPL ratios remaining below 2% in the near term. This resilience is underpinned by robust buffers—high reserves and capital levels—that ensure the banks can weather economic shocks.