EARNINGS for the trio of local banks – DBS : D05 0%, OCBC : O39 0% and UOB : U11 0% – for the three months ended December 2023 are expected to be softer quarter on quarter, amid weaker net interest margins (NIMs) and seasonally weaker fee income.

But analysts said the lenders are likely to continue posting attractive dividend yields for Q4, which should provide support for their share prices.

CGS-CIMB analysts Andrea Choong and Lim Siew Khee said the banks’ Q4 earnings will likely be weighed down by seasonally softer business volumes given the end-of-year festive period.