To The Moon

Here’s a detailed view on the upcoming earnings for Singapore’s big three banks — DBS Group Holdings Ltd (DBS), Oversea‑Chinese Banking Corporation Limited (OCBC) and United Overseas Bank Limited (UOB) — along with thoughts on whether they can follow the strong start from U.S. big banks, which bank has the best chance to set new highs post-earnings, and whether they are good buys ahead of results.

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✅ What we know

The banks remain core components of the Singapore market: DBS, OCBC & UOB collectively represent a large share of the Straits Times Index (STI) and are liquid and well-tracked. 

DBS recently hit (or is near) all-time highs for its share price. 

Analysts expect headwinds: for Q3 (or upcoming quarter) the banks are expected to report flat or weaker net profit trends (due to margin compression, slower loan growth) overall. 

One key risk: if interest rates start to ease (or deposit costs fall less quickly than loan yields), the net interest margin (NIM) — traditionally the banks’ profit engine — may be under pressure. 

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🔍 Can they follow the U.S. banks?

The U.S. big banks have recently benefitted from strong NIMs, improving credit outlooks, capital return announcements, and general optimism about the global economy. By contrast:

For Singapore banks, some of the “easy gains” may already be priced in given recent rallies and high valuations (especially for DBS).

The tailwinds are more muted: slower loan growth in the region, margin compression risk, and heightened sensitivity to rate shifts in Singapore and Asia.

Therefore, while these banks can post solid numbers, the “pop” effect may be smaller than in the U.S., and the risk of a disappointment may be slightly higher.

In short: yes, they could follow to some extent, but the upside may be more limited and the margin for error smaller.

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📊 Which bank has the best chance to set new highs?

If I were to rank the three with respect to potential to set new highs post-earnings:

1. DBS – It already is near/at highs, suggests market has high expectations. If DBS executes and shows good capital return (dividends/buybacks) plus solid numbers then new highs are plausible.

2. UOB – It may have more upside relative to recent performance (if it has been underperforming) which gives it more “room” to surprise.

3. OCBC – Has more headwinds flagged (slower loan growth, weaker outlook) and thus a lesser chance of dramatic upside. Analysts have been more cautious. For example, banks’ commentary notes margin risk for 2025. 

Thus, if you’re looking for “most likely to make new highs”, DBS is the frontrunner — but also the most exposed to disappointment.

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🤔 Good buys ahead of earnings?

Here’s a cautious take, aligned with your preference for affordable/low-risk options (given your low-income group context):

Pros

These are high-quality franchises, good capitalisation, strong market positions in Singapore and region.

Dividend yield remains attractive relative to many other equities. 

If earnings beat + positive capital return announcements come, there could be upside.

Cons

Expectations may be elevated (especially for DBS). A weak result could lead to disappointment.

Rate environment risk: If the cycle turns (rates fall) faster than expected, the margin tailwind reverses.

Regionally, growth is moderate and the macro backdrop is less dynamic than the U.S.

My View

If you are looking to enter now, a staggered entry approach makes sense: buy a portion before earnings (to capture potential upside) but limit size given risk of earnings or outlook miss. Use the weaker bank (UOB) as perhaps a more attractive entry relative to DBS (cheaper upside) and avoid going “all-in”.

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📝 Summary

Yes, the SG banks can attempt to follow the U.S. banks, but the environment is tougher and the upside more constrained.

Of the three, DBS has the best chance to hit new highs — but also carries more expectations.

Buying ahead of earnings is not a bad idea, but you should treat it as opportunistic rather than “risk free”.

Given your context (prefers affordability and stability), perhaps lean toward the bank with a bit more margin for surprise (UOB) rather than the one priced to perfection (DBS).

Post-earnings will be critical: look for strong capital return announcements (dividends/buybacks), good commentary on NIM, loan growth and credit quality.