Banking on the Singapore banks
For years, the three local banks have been the dependable centre of gravity in the Singapore market. Big, profitable and usually marching in step, their quarterly numbers rarely produce genuine surprises. Which is why the latest reporting season made investors sit up. The trio did not just diverge. They jolted in completely different directions.
In this week’s Mark To Market, a BT Correspondents podcast, host Ben Paul unpacks an unusually lumpy set of results. UOB delivered the biggest shock, reporting a 72.5 per cent plunge in third quarter earnings after taking steep general and specific allowances. DBS and OCBC fared better, although not brilliantly, as net interest margins continued to contract in the face of falling rates. The market reaction was swift. UOB sank. DBS and OCBC rose. For a sector that usually trades as a bloc, the separation was striking.
Why listen
The real story behind UOB’s provisions Paul explains how the bank’s surge in allowances resembles a one time reset that may reduce future risk, but why investors still reacted sharply.
Why DBS remains in a class of its own Higher ROE, more resilient income and its outsized weighting in the STI all shape its continued outperformance.
Where OCBC sits in the hierarchy Not the flashiest performer, but increasingly viewed as the value play for investors wary of UOB’s volatility and DBS’s lofty valuation.
How bank dividends may evolve Buybacks, special payouts and elevated yields continue to attract investors even as net interest margins narrow.
What gives the episode its weight is Paul’s long view. Are the banks still core holdings, even though their paths are no longer identical? Strategy, asset quality and market confidence matter again.
For a sharp, grounded guide to what the latest results mean for 2026 and beyond, listen now.
Stay tuned for more insightful episodes from BT Correspondents. Share your thoughts and suggestions with the team at btpodcasts@sph.com.sg
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