DBS Finally Rebounds! Better Dividend Yield, Better Pick?
The year 2026 started off strong, but recent geopolitical tensions sent the three major banks sliding. Surprisingly, $DBS(D05.SI)$ , has become this year’s laggard—down 1.2% year-to-date, while $OCBC Bank(O39.SI)$ bucked the trend with a 5.9% gain.
In the investment world, a price drop often signals opportunity, especially in dividend yield.
Who Has the Stronger Fundamentals?
Despite share price pressure, are Singapore banks’ fundamentals really shaken? Let’s review 4Q25 results:
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OCBC Shines: The only local bank with year-on-year net profit growth (+3.4%) in 4Q25. Non-interest income performed well, and net interest margin (NIM) also rebounded.
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DBS Under Pressure: Net profit fell 10.5% YoY, mainly due to margin compression and a one-off real estate loan provision.
Is DBS Worth Buying Now?
With its share price recently dipping below SGD 55, DBS’s dividend yield has risen to an attractive 5.9%. Compared to the start of the year, its valuation now seems much cheaper.
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💬 Discussion:
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With a 5.9% dividend yield, do you find DBS more attractive than OCBC and UOB?
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Given current Middle East tensions and macro volatility, would you buy the dip or stay on the sidelines?
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Do you think DBS’s share price has bottomed out, or will it test lower support levels?
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Valuation-wise, DBS looks attractive with a 5.9% dividend yield and a share price below SGD 55, offering an income cushion and potential upside for long-term investors. This makes me consider adding exposure, assuming the bank weathers geopolitical and macro volatility.
Still, I’d be cautious on timing. Ongoing Middle East tensions could push DBS lower before stabilizing, so I’d likely scale in rather than buy all at once. Overall, DBS is a strong dividend play, while OCBC $ocbc bank(O39.SI)$ remains a steadier performer with growth momentum.
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2. Middle East war is an ongoing issue and has no signs of stopping anytime soon. This is likely to weigh on market returns for an extended period.
3. Dbs share price has not bottomed out with further falls expected due to economic upheaval and disruption
OCBC Shines: The only local bank with year-on-year net profit growth (+3.4%) in 4Q25. Non-interest income performed well, and net interest margin (NIM) also rebounded.
DBS Under Pressure: Net profit fell 10.5% YoY, mainly due to margin compression and a one-off real estate loan provision.