Reward 500 Tiger-coinsLast Friday, $OCBC Bank(O39.SI)$ reported a 7% year-over-year decline in Q2 profit to S$1.82 billion. Despite the drop, the results exceeded the S$1.79 billion consensus forecast from a Bloomberg poll of six analysts. The bank also announced a dividend of S$0.41 per share.
DBS Posts Record Revenue in Q1! Limited decline in Q2?
In the previous quarter, DBS reported total revenue of S$5.557 billion, a 13% year-on-year increase, setting a new record. Net interest margin (NIM) remained stable at 2.14%. Fee income surpassed S$1 billion for the first time, and treasury customer sales hit an all-time high. The cost-to-income ratio was steady at 37%, and pre-provision operating profit rose 14% to S$3.478 billion.
Although all three major banks were expected to post lower NIMs in Q2, DBS managed to keep it above 2%. The bank's stock has risen 13% year-to-date.
$UOB(U11.SI)$ Mixed Q1 Amid NIM Pressure
In Q1, UOB’s net profit fell 1.6% year-on-year to S$1.49 billion, mainly due to reduced net interest income. However, this still outperformed the market forecast of S$1.43 billion. NIM dropped from 2.14% a year ago to 2.02%, leading to a 2% year-on-year decline in net interest income to S$2.36 billion.
On the upside, net fee income rose 5% to S$580 million, driven by higher loan-related, wealth management, and credit card fees. Retail bond sales and strong hedging demand boosted customer treasury income to a record high.
Trading and investment income also hit new highs, pushing non-interest income up 3% to S$581 million. Despite this, UOB’s stock is up only 3.5% year-to-date.
Questions for discussion:
Can DBS maintain its strong NIM performance in the face of industry-wide pressure?
Is UOB’s slower stock performance an opportunity for long-term investors?
Can UOB’s non interest income continue to rise and offset NII decline?
Which bank are you bullish?
REWARDS
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Comments
which banks you prefer [Thinking] [Thinking] [Thinking]
Can DBS maintain its strong NIM performance in the face of industry-wide pressure?
Is UOB’s slower stock performance an opportunity for long-term investors?
Can UOB’s non interest income continue to rise and offset NII decline?
Which bank are you bullish?
REWARDS
All valid comments will receive 5 Tiger Coins; Tag your friends to win another 5 Tiger Coins
$DBS Group Holdings(D05.SI)$ NIM has remained stable at 2.14%. However Analysts expect NIMs to edge lower across Singapore's major banks. This is due to easing global interest rates, rising deposit competition and regulatory shifts.
Nonetheless DBS is well positioned to manage NIM pressure thanks to its strong balance sheet, diversified income streams and strategic agility.
As a long term investor of DBS, I do not look at just 1 earnings quarter but at the long term horizon and I must say that DBS is a fortress of stability amid challenging macroeconomic environment.
@Tiger_SG @Tiger_comments @TigerStars @CaptainTiger
UOB’s $UOB(U11.SI)$ weaker stock performance could be a long-term opportunity. Despite lower net interest income, its non-interest income segments like wealth management and trading showed strong growth. Its consistent dividend payout also adds to its appeal for income-focused investors.
The key for UOB is whether it can consistently grow non-interest income. While DBS already proves its resilience, UOB still needs to show it can maintain momentum. For now, I remain more confident in DBS.
@TigerStars @Tiger_comments