Singapore banks

Margin relief lifts outlook for DBS, OCBC and UOB, extending Singapore bank rally

Sentiment remains largely positive on the sector amid resilient asset quality, steady capital returns

The banking trio drove the STI up 1.3% to close at 4,923.02 on Jan 27.
BROKERS’ TAKE

How high can they go? Analysts set new target prices for DBS, OCBC, UOB after record week

The three Singapore banks are driving the STI to new peaks as well

RHB maintains its “neutral” call on OCBC.
BROKERS’ TAKE

‘Swiftest pace of expansion’: RHB lifts OCBC target price to S$21.30 on Q4 earnings growth forecast

The quarter’s expected S$0.575 DPS would bring DPS for FY2025 to S$0.985

UOB surged 7.5% last week, which made it the best performing constituent of the STI by a long way.
MARK TO MARKET

Will UOB climb higher after its big rebound?

Softer rates are squeezing NIMs at the 3 Singapore banks, but also spurring excitement about the potential for valuations to rise and converge

Years of rate swings have left borrowers cautious, with many prioritising predictable monthly repayments even as floating rate packages get more attractive.

Floating rates are back on the radar, but fixed mortgages still rule Singapore’s home loans

After several years of rate volatility, many borrowers are placing greater emphasis on certainty

Singapore banks are poised to benefit from wealth asset management inflows, given the city-state's "safe-haven" status, says one analyst.
HOT STOCK

UOB soars 5% as OCBC jumps 3.4%; record highs drive STI to all-time peak

This comes as analysts raise their target prices for both lenders

Under an SRT, a bank transfers a defined portion of the credit risk from a pool of loans to external investors.
BT EXPLAINS

What are significant risk transfers – and why is DBS reportedly considering them?

Analysts say that other banks in Asia, including OCBC and UOB, could eventually explore similar deals

DBS’ quarterly dividend per share is expected to go up by S$0.06 to S$0.66 from Q4 FY2025.
BROKERS’ TAKE

UOBKH rates top pick DBS a ‘buy’ on 5.6% yield

It also upgrades the overall banking sector to ‘overweight’ and keeps its ‘buy’ call for OCBC

DBS, OCBC and UOB will continue to explore ways to return excess capital to shareholders, such as through dividends and share buybacks, note analysts.
OUTLOOK 2026

Fee income, recovery in loan growth are key drivers for Singapore banks in 2026

But analysts expect overall results to be flattish or lower, weighed down by net interest income

"If you have processes that don’t work well, but you’ve got good people, they’ll know how to fix it and get things done right," said Lee Lung-Nien, Citi country officer and banking head for Singapore.

Citi’s new Singapore chief Lee Lung-Nien on legacy and leading at home

‘I want to be remembered as a good mentor,’ says the 35-year Citi veteran