Why analysts see UOB's selective lending strategy attractive

The bank remains disciplined in its pricing.

Analysts at Maybank Kim Eng say UOB's selective lending strategy is a good move.

The brokerage firm said the bank remains disciplined in its pricing to ensure no significant margin compression from high-quality customers, who tend to have lower lending rates due to lower credit risks.

Meanwhile, customer spreads in 2Q17 were maintained at 2.14%, higher than peers’ 1.96-2.03%.

"With a broadening economic recovery and rebound in Singapore’s property market, we expect loan growth momentum to be sustained," Maybank Kim Eng said.