UOB's net profit seen to dip 4% to S$756m

Last quarter's earnings slightly inflated.

According to CIMB, it expects UOB to report 3Q13 net profit of S$756m (-4% qoq), higher than consensus expectations of S$685m. 

Here's more from CIMB:

UOB’s 2Q13 earnings (S$783m) were slightly inflated because of investment gains from associates. Nonetheless, its core revenue trends were promising in early-2013 and we expect the momentum to sustain.

This is reflected in the 6% qoq revenue growth and 9% PPOP growth expected for 3Q13. We think that 3Q13 bottomline will look weaker only because of the higher loan loss provisions (as 2Q13 writebacks will normalise) and the absence of one-off ‘bumps’ in associates contributions.

The key question that investors will ask is whether the ASEAN regionalisation strategy will keep growing, as the regional economy slows.