Yahoo Finance 
UOB loan growth expands 8.9%
It was driven by Singapore and Indonesia.
UOB demonstrated a pristine asset quality with NPL ratio receding 14bp qoq to 1.47% in 4Q16, according to research firm UOB KayHian.
The report noted that UOB loan growth expanded in the past quarter, growing 8.9%.
"From a geographical perspective, the sequential expansion was driven by Singapore and Indonesia," the brokerage noted.
Meanwhile, NIM was maintained at 1.69%. UOB said there will be a positive impact on NIM from extending duration.
"UOB has kept the duration of its available-for-sale investment book relatively short and holds mainly Singapore
government bonds. Management sees a pick-up in inflation in many countries, which could signal an up-cycle in interest rates. Management has decided to lengthen duration since mid-16. Yield from interbank and securities improved significantly in 2H16 (2Q16: 0.25%, 4Q16: 0.55%), which contributed to the stable NIM," the firm noted.
More From Singapore Business Review
