Banking on fundamentals
An in-depth look at all the factors you need to bear in mind for investing in the banking sector
IN the first two editions of the investor series published earlier this year, we explored the Real Estate Investment Trust (Reit) business model and the telecommunications sector. Here, we examine banks and highlight the various factors and lines of enquiry that will help you make informed investment decisions.
Spheres of operation
The role banks play in our lives is vital. Their activities underpin the efficient working of an economy - indeed, they are often among the most significant constituents of a country's stock market. This is true in Singapore, where the three largest holdings in the FTSE ST All-Share Index - DBS, OCBC and UOB - are all commercial banking entities that offer a wide array of services. Some of these are offered as part of the bank itself, while specific specialised offerings are rendered through subsidiaries.
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