Reward 500 Tiger-coinsThe year 2026 started off strong, but recent geopolitical tensions sent the three major banks sliding. Surprisingly, $DBS(D05.SI)$ , has become this year’s laggard—down 1.2% year-to-date, while $OCBC Bank(O39.SI)$ bucked the trend with a 5.9% gain.
In the investment world, a price drop often signals opportunity, especially in dividend yield.
Who Has the Stronger Fundamentals?
Despite share price pressure, are Singapore banks’ fundamentals really shaken? Let’s review 4Q25 results:
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OCBC Shines: The only local bank with year-on-year net profit growth (+3.4%) in 4Q25. Non-interest income performed well, and net interest margin (NIM) also rebounded.
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DBS Under Pressure: Net profit fell 10.5% YoY, mainly due to margin compression and a one-off real estate loan provision.
Is DBS Worth Buying Now?
With its share price recently dipping below SGD 55, DBS’s dividend yield has risen to an attractive 5.9%. Compared to the start of the year, its valuation now seems much cheaper.
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💬 Discussion:
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With a 5.9% dividend yield, do you find DBS more attractive than OCBC and UOB?
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Given current Middle East tensions and macro volatility, would you buy the dip or stay on the sidelines?
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Do you think DBS’s share price has bottomed out, or will it test lower support levels?
Comments
Valuation-wise, DBS looks attractive with a 5.9% dividend yield and a share price below SGD 55, offering an income cushion and potential upside for long-term investors. This makes me consider adding exposure, assuming the bank weathers geopolitical and macro volatility.
Still, I’d be cautious on timing. Ongoing Middle East tensions could push DBS lower before stabilizing, so I’d likely scale in rather than buy all at once. Overall, DBS is a strong dividend play, while OCBC $ocbc bank(O39.SI)$ remains a steadier performer with growth momentum.
@Tiger_comments @TigerStars @TigerClub @Tiger_SG
DBS is currently trading around S$55.60, down from its January peak of S$60.40.
Current Support: The S$55.00 level is acting as a psychological floor for now.
Lower Support: If geopolitical tensions escalate further, technical analysts see a "valuation gap" that could test the S$50.00 – S$52.00 range.
Upside Potential: Despite the volatility, the consensus analyst target remains optimistic at S$61.10, implying a potential 10% upside from here.
Market sentiment is currently balanced between caution due to Middle East volatility and "buying the war drop" for quality yield.
DBS recently touched an intraday low of S$53.50 on March 9, 2026, before recovering to S$55.72 by March 11.
Current Support: The recent rebound suggests a short-term floor near S$53.50 - S$54.00.
If market sentiment remains bearish, some analysts expect indices to test lower major support levels established in late 2025. For DBS specifically, its 52-week low of S$36.30 remains a distant but significant floor.
The Middle East conflict has spiked oil prices toward $120, creating a complex backdrop:
The Case for Buying: If you have a 3–5 year horizon, these geopolitical dips are often seen as entry points for "fortress" stocks like Singapore banks.
The Case for Sidelining: Heightened macro uncertainty and the risk of "stagflation" (high inflation + low growth) could lead to further downward revisions in bank earnings for 2026.
Institutional View: DBS CEO Tan Su Shan has advised investors to brace for a "more volatile 2026," suggesting the turbulence may not be over.
While DBS’s 5.9% yield is the headline grabber, the "best" pick depends on your priority:
Income King: DBS offers the highest yield, bolstered by a 15-cent quarterly capital return dividend for 2026.
Clarity: DBS provides a clearer roadmap, aiming for a base quarterly dividend of S$0.66 by the second half of 2026.
Valuation Trap: DBS trades at a steep 2.3x Price-to-Book (P/B), making it significantly more "expensive" than OCBC (1.5x) or UOB (1.2x).
Peer Resiliency: OCBC was the only bank to report year-on-year profit growth (+3.4%) in the latest quarter, whereas DBS and UOB saw slight declines.