I lean towards DBS, but a strong bank is not necessarily an attractive stock at every price.
Despite a 5% decline in quarterly profit, DBS delivered 4% growth in net interest income, while wealth assets reached S$544 billion. Its net interest margin also stabilised at 1.87% quarter on quarter.
UOB faces greater funding-cost pressure. Record fee income is encouraging, but weaker margin guidance suggests its earnings recovery needs more time.
However, DBS is not automatically cheap. Its S$0.81 dividend includes capital returns, which should not be mistaken for recurring income.
My strategy: Keep DBS on the watchlist, avoid chasing dividends, and wait for OCBC's November 6 results.
Sustainable earnings growth matters more than an attractive dividend headline.
@SGX_Stars [思考]
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