SG Banks Big Rebound: How Do You Weigh Earnings Risks Against Valuations?

Comments

• icycrystal

  04-11

  icycrystal
  @Universe宇宙 @Shyon @koolgal @HelenJanet @LMSunshine @rL @GoodLife99 @SPACE ROCKET @TigerGPT @Aqa

  Singapore’s three major local banks have rebounded from multi-month lows. As of Wednesday’s close, the combined market capitalization of $DBS Group Holdings(D05.SI)$ , $ocbc bank(O39.SI)$ , and $UOB(U11.SI)$ has declined by approximately S$48.8 billion since April 2.

  Despite the recent rebound, banks continue to face downside earnings risks, driven by narrowing net interest margins (NIM), slowing loan growth, and declining wealth management fees.

  Among the three, only DBS has maintained relatively stable NIMs, while OCBC and UOB have seen a downward trend over the past two years.

  Low valuations + high dividend yield: Have you bottomed three banks?

  Are you bullish or bearish on their earnings in 2025?

  Will US big bank earnings provide guidance for SG banks?

  Is DBS the best choice now?

  • Shyon: 
    Thanks yo
  • koolgal: 
    Thanks for sharing 😍😍😍
• Shyon

  04-11

  Shyon
  I’ve been watching Singapore’s banks closely. While the rebound is nice to see, I’m still cautious about 2025 earnings. Pressures on net interest margins, slowing loan growth, and weaker wealth management fees—especially with a possible Fed rate cut—could weigh on results. Lower rates mean tighter margins, which hurts banks’ core income.

  That said, valuations are starting to look attractive. PE ratios are low, and dividend yields are appealing—especially with DBS, which also stands out for its stable NIM and aggressive buybacks. Right now, DBS looks like the best pick to me, but if OCBC or UOB dip further, they could be worth a look.

  I’m also tracking U.S. bank earnings for signs of what’s to come. If there’s weakness, it could impact local sentiment too. For now, I’m staying patient, holding cash, and watching for a better entry point.

  $DBS Group Holdings(D05.SI)$ $ocbc bank(O39.SI)$ $UOB(U11.SI)$

  @Tiger_SG @TigerStars @Tiger_comments

  • ShyonReplyELI_59: 
    My pleasure!
  • ShyonReply1PC: 
    Golden opportunity
  • ELI_59ReplyShyon: 
    Thanks for sharing and tagging
  • 1PCReplyShyon: 
    Yeah 😂 waiting for DBS & UOB to Bounce further up 🙏
  • Shyon: 
    Come and join if you haven't @Fenger1188 @GoodLife99 @icycrystal @b1uesky @Barcode @nomadic_m @1PC @ELI_59 @koolgal @rL
• MHh

  04-12

  MHh
  I have not bottomed the banks as I was expecting them to go lower before Trump’s surprise u-turn on tariffs. But it is only a 90-day period which means the tariffs could return. If the tariffs return, I’m bearishb on their returns for 2025. DBS has always been the best choice but I prefer to wait and see for now. US big bank earnings would provide guidance for Singapore banks as the nature of business is similar; the main differentiation is the market that they are exposed to and as a open market, Singapore banks are exposed to similar risk to the US banks.
  @Universe宇宙 @Wayneqq @HelenJanet @DiAngel @KYHBKO @Success88 @Kaixiang @rL @SPOT_ON @Fenger1188 come join
  • KYHBKO: 
    CRE, regional banks and some of the retail are not doing well.
• koolgal

  04-10

  koolgal
  🌟🌟🌟Even though the current market is volatile, I am keeping faith that my investment in $DBS Group Holdings(D05.SI)$ will continue to grow exponentially in the long term.  DBS is the largest bank in Southeast Asia with a market capitalisation of SGD 112.73 billion.  It ticks the core fundamentals of a quality stock with a rock solid balance sheet, is profitable and has an excellent management team.

  DBS also pays dividends every 3 months.  The current dividend yield is 5.60% which is much better than putting money in the savings account.

  In the short term, there will be much volatility ahead due to the effect of the US tariffs.  However with a long term horizon, the effect of compounding will reward me with capital growth.

  Investing is a marathon, not a sprint.

  @Tiger_SG @Tiger_comments @TigerStars @CaptainTiger @TigerClub

• DiAngel

  04-15

  DiAngel
  I m waiting to buy xxxx units $ocbc bank(O39.SI)$ so as to have it the same units as $UOB(U11.SI)$. But past few days, brain 🤯🤕😵‍💫. Waiting for my IV to weave off from my body before I go hunting.
• Aqa

  04-11

  Aqa
  The Singapore banks’ stocks have been very badly hit by the crash in U.S. market. The recent rebound might have break the fall but the stocks are still in red today. Low valuations and good historical dividend yields may make the banks stocks look attractive to investors. Do note that with the uncertainties in the present global economy, banks face severe downside earning risks. Do invest diligently and do due diligence before each trade. Thanks @Tiger_SG @icycrystal