BTS
2025-11-08

The outlook for Singaporean banks in 2026 will be influenced by macroeconomic factors and broader global trends affecting the sector。。。

DBS (D05) could see prudent profit-taking after strong gains, but holding may be beneficial for long-term investors confident in its solid fundamentals and growth prospects

UOB (U11) may be undervalued; buying the dip could be attractive if the weakness stems from short-term factors, but investors should monitor potential structural or regional risks

OCBC (O39) is likely to track the trends of its peers, but its diversified revenue from wealth management and insurance businesses may offer more stability in volatile markets

Bank performance will hinge on global economic conditions, interest rate trends, and market volatility; while growth is possible, risks from recessions, policy shifts, or geopolitical events could weigh on bank stock valuations

Tag :@Huat99  @Snowwhite  

DBS Breaks $55 While UOB Slides: Would 2026 Be Harsh For SG Banks?

@Tiger_SG：
Singapore’s two largest banks released their earnings today. $DBS(D05.SI)$ hit a record high, while $UOB(U11.SI)$ plunged 3%. Let’s take a look at the key highlights from their reports. DBS: Delivered strong results despite softer margins; record income and higher dividend show balance-sheet resilience. 2026 guidance implies only a slight dip in earnings, cushioned by wealth-management momentum. UOB: Hit hard by heavy provisioning; 2026 margins likely to fall further. Management prioritizes prudence and coverage, but profit recovery depends on credit-cycle stability. DBS breaks $55 with record income! Q3 results were resilient and beat estimates. NIM narrowed but diversified income offset pressure. Lower commercial-book NII due to rate decline, partly offset by strong non-interest income growth. Total Income hit a record high, driven by strong wealth management and deposit growth Net Profit: S$2.95 b (-2% YoY) vs estimate S$2.72 b (beat 8.46%) Net Interest Margin (NIM): 1.96% (down from 2.11%) Dividend: 75 Singapore cents per share (60 c ordinary + 15 c capital return) vs 54 c a year ago 2026 outlook Net Profit expected to dip slightly from 2025. Total Income expected to stay around 2025 levels despite rate headwinds Commercial-book non-interestn income would be high-single-digit growth while wealth-management Income would be mid-teens growth UOB: Margins weakening further into 2026 Sharp profit slump driven by heavy credit-loss provisions. S$1.36 b total allowances (including S$615 m in pre-emptive general provisions). CEO said "We proactively set aside general allowances to strengthen provision coverage, supported by a strong capital base.” Dividend plan remains unchanged. Net Profit: S$443 m (-72% YoY) vs estimate S$1.35 b. Net Interest Margin (NIM): 1.82% (down from 2.05%) 2026 Outlook: NIM: Expected at 1.75–1.80% (below 2025’s 1.85–1.90%) Loan Growth: Low single digits; Fee Income: High-single- to double-digit growth Profitability under pressure from narrowing spreads and elevated provisions Will $OCBC Bank(O39.SI)$ follow which company's trend? Take profit of DBS as it hits a record high? Or buy the dip of UOB? Would banks suffer in 2026? Leave your comments to win tiger coins~ ——————————————————————— Grow Your CPF/SRS/CDP in Cash Boost Account Grow your retirement with CPF/SRS in Tiger Cash Boost Account. Sell CDP securities instantly. Professional. Convenient. Diversified. Manage your investments all in one place. Cash Boost Account, SGD 688 Cash Vouchers* up for grabs!
DBS Breaks $55 While UOB Slides: Would 2026 Be Harsh For SG Banks?

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Comment（6）

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  • DebbyLily
    ·2025-11-09
    TOP
    The potential for growth is exciting, but those geopolitical risks could turn the tide quickly.
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      [smile]
      2025-11-14
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  • Norton Rebecca
    ·2025-11-10
    TOP
    Solid fundamentals beat profit-taking,holding DBS for 2026 gains!
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      [smile]
      2025-11-14
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  • Reg Ford
    ·2025-11-10
    OCBC’s my 2026 safe bet!
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      [smile]
      2025-11-14
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