DBS Breaks $55 While UOB Slides: Would 2026 Be Harsh For SG Banks?
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~
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In contrast, $UOB(U11.SI)$ profits slumped due to heavy provisions and weaker margins. Management’s prudence in building reserves is wise, but the steep profit drop and cautious guidance highlight ongoing challenges. Investors are rightly pricing in near-term headwinds for UOB.
For $ocbc bank(O39.SI)$ , I expect results between DBS and UOB — steady but moderate. I’d trim DBS to lock in profits after its strong run and wait for more clarity before buying UOB’s dip. With rate cuts likely in 2026, banks may face further NIM pressure, though fee and wealth income could cushion the impact.
@Tiger_SG @Tiger_comments @TigerStars
However our 3 local Singapore banks are already preparing for this shift & possess alternate revenue sources to mitigate the impact.
Our Singapore banks $DBS(D05.SI)$ $OCBC Bank(O39.SI)$ and $UOB(U11.SI)$ are focusing on the lucrative Wealth Management and Private Banking sector. The banks can generate significant fees from managing assets of high net worth individuals and retail customers through investment products, advisory services and portfolio management.
Moreover fees from managing investment funds and other asset management services provide a steady, non interest based income stream.
Lower interest rates may also translate to an increase in bank loans as lower interest rates reduce the cost of borrowing for customers.
@Tiger_SG @TigerStars @Tiger_comments @TigerClub @CaptainTiger
2026 tests adaptation over expansion: rate normalization caps upside, but robust balance sheets and income diversity ensure no rout. DBS offers relative safety; blend holdings for yield and growth.
That is how my DBS shares are up 136% just simply by buying and holding long term. Moreover I am also rewarded by DBS's attractive dividends paid every 3 months.
Go Long Go Strong Go DBS 🚀🚀🚀🌛🌛🌛🌈🌈🌈💰💰💰
@Tiger_SG @Tiger_comments @TigerStars @TigerClub @CaptainTiger
Both DBS and OCBC beat analysts expectations. While DBS has shown stronger fundamentals, its current premium valuation makes OCBC potentially more attractive.
Slow and Steady Wins the Race. 🚀🚀🚀🌛🌛🌛🌈🌈🌈💰💰💰
@Tiger_SG @Tiger_comments @TigerStars @CaptainTiger @TigerClub
Check them in the history - “community distribution“
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
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@Huat99
@Snowwhite
Lets see how will this impact overall FY2025 [Surprised]
The sentiment for DBS were highly positive, and prices kept creeping up, while UOB was already sliding slowly
Interesting that the 2 darlings could have such contrasting results and outcomes
預計2025年淨利潤將小幅下降。儘管面臨利率阻力，總收入預計將保持在2025年左右的水平
商業賬簿非利息收入將實現高個位數增長，而財富管理收入將實現15%左右的增長