Updating Estimates to Account for 3Q26 Sale of Navitas Platform

研报英文原文证据摘录

Updating Estimates to Account for 3Q26 Sale of Navitas Platform

ked profile will earn the bank a higher P/E multiple over time, Book Value/Share US$30.54

Tang. Book/Share $22.47 but we see slightly less upside near-term as the bank works to deploy the new liquidity

Price/Book 110%

into higher earning assets. UCB does have a somewhat differentiated story relative to Price/Tang.Book 149%

the industry, with its ~74% pro forma L/D ratio set to fund HSD loan growth in the qtrs 52-Week High / Low US$36.77 / US$27.23

and years ahead, but it will likely take time for this balance sheet remix to offset the near- Avg Daily Vol (000) 836

term earrings reduction from the Navitas sale. Div Yield 2.99%

Total Assets ($mil) 28,179

• Adjustments to Model - For the time being, we are putting the entirety of the cash ROE 9.32%

from the sale into the securities book - while assuming the NIM is impacted by ~30 bps Shares Out (mil) 120.7

from this migration from the higher-yielding Navitas loans into these securities at 4-4.5% Div (ann) US$1.00

Fiscal Year End Dec yields. However, we are increasing our fwd loan growth expectations in 2H26 and into

2027 - now modeling for ~8% loan growth in 2027 (up from ~6.5% previously). Finally, Price Performance - 1 Year

we are assuming much more aggressive share repurchase activity through YE27 - now

expecting ~$113M in repurchases in 2026 and ~$216M in 2027 (up from $87M and $17M USD38

respectively). Ultimately, UCB is likely to pursue some other EPS accretive actions in 36

the near/medium-term, with a balance sheet restructuring the most likely incremental

trade. We would expect some modest upside over these numbers in time as the bank 34

fully identifies the plan to deploy the gains and liquidity unlocked from the Navitas sale. 32