To The Moon

$DBS(D05.SI)$ $OCBC Bank(O39.SI)$ $UOB(U11.SI)$ Singapore's powerhouse banks—DBS, UOB, and OCBC—are gearing up for their third-quarter reveals, with DBS and OCBC slated for early November drops. DBS sits tantalizingly close to smashing its peak of S$54.80 from earlier this month, trading around S$54.05 lately, while UOB hovers near S$34.83 and OCBC at S$16.85. Fresh off a stellar run from US giants like JPMorgan, Goldman Sachs, and Bank of America, who crushed forecasts with double-digit profit surges fueled by booming investment banking fees and resilient consumer spending, the big question looms: can these local heavyweights mirror that momentum and propel fresh highs?

US banks set the bar sky-high this quarter, with JPMorgan posting EPS of S$5.07 against estimates of S$4.84 and revenue hitting S$47.1 billion, up on stronger trading and deal-making. Goldman Sachs delivered a jaw-dropping EPS of S$12.25, beating by over 11%, thanks to a 35% jump in investment banking revenues amid market volatility plays. Bank of America followed suit with EPS at S$1.06 and revenues of S$28 billion, both topping predictions as credit losses stayed tame despite economic jitters. Overall, the sector's earnings growth clocked in at 8.5% for the S&P 500 financials, lifted by Fed rate cuts unlocking capital and AI-driven efficiencies boosting margins.

Now, eyes turn to Singapore's trio, where analysts forecast a mixed but optimistic bag. DBS, the market cap leader north of S$150 billion, eyes softer net interest margins from rate easing but counters with robust wealth management inflows and digital banking expansions across Asia. Expectations peg its Q3 net profit around S$2.5 billion, down slightly year-on-year yet buoyed by fee income growth of 10-15%. UOB, with its Southeast Asian stronghold, projects steady loan book expansion at 5-7%, leaning on corporate lending recoveries, though provisions might tick up from regional exposures. OCBC, the dividend darling, anticipates core earnings holding firm at S$1.8 billion, supported by insurance arm Great Eastern's rebound and Hong Kong operations firing on all cylinders.

Who breaks out post-earnings? DBS leads the pack with momentum, potentially vaulting to S$55.25 targets if it sustains dividend payouts at S$0.60 per share and CET1 ratios above 14%. UOB could follow if ASEAN growth narratives hold, aiming for S$36 highs, while OCBC's defensive play might lag but offers stability with yields nearing 5%. All three boast low cost-to-income ratios in the low 40s, signaling efficiency edges over US peers amid global uncertainties.

Here's a quick comparison of key metrics:

here's chart to plot a simple line chart using matplotlib—run it to see the surge:

Sentiment pulses positive from trading floors, with institutional buys ramping up as FII holdings climb to 15-20% across the board. DBS shines for growth chasers, given its tech-forward pivot and India-Taiwan expansions yielding 20% ROE. UOB appeals to value hunters with undervalued ASEAN bets, while OCBC suits income seekers craving those juicy payouts amid volatility. Ahead of the prints, they're solid picks if you buy the rate-cut tailwind narrative—position for upside surprises in fee revenues and asset quality, but watch provisions if China drags.

Overall, these banks could echo US strength if global trade perks up, setting DBS for that elusive new peak and dragging UOB, OCBC along for the ride. Dive in pre-earnings for potential pops, but size wisely amid broader market swings.

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