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3 BIG Spore banks ....:))

• This morning before market open, both DBS and UOB announced their 3Q25 earnings
   
• UOB: stock fell as much as 4.6% to $33.25 this morning after the bank said that it took SGD 615 million general credit allowances to cushion against broader banking sector headwinds given the US and China real estate risks, which led to its 3Q net income tumbling 72% to SGD 443 million, far below the SGD 2.27 billion average estimates of Bloomberg analysts
   
• UOB' s results contrast with that of DBS, which posted higher than expected profit of SGD 2.95 billion which despite falling 2% from the previous year, was ahead of the SGD 2.79 billion predicted by Bloomberg analysts
   
• Particularly, its wealth fees surged more than 30% to SGD 796 million, while assets under management hit a record to SGD 474 billion
   
• DBS: stock has rallied 2.9% as of 923AM to a new record high of $55.04 on the back of its results

 

UOB&rsquo s 3Q25  earnings of S$443mn were below our estimates, with 9M25 earnings at 56% of our FY25e forecast. NII fell 8% YoY to S$2,265mn as loan growth of 5% YoY cushioned NIM decline of 23bps to 1.82%. Fee income fell 2% YoY as growth in loan-related, wealth and card activities was offset by card rewards expenses. Earnings took a hit from a spike in provisions to S$1.4bn (3Q24: S$304mn) from pre-emptive provisioning to strengthen coverage against macroeconomic uncertainties and sector-specific headwinds, alongside higher specific allowance for a few non-systemic corporate accounts. Resultantly, credit costs spiked 100bps YoY to 134bps. UOB will maintain their dividend policy (50% payout ratio) and have committed to their share buyback  programme. They provided FY26e guidance for NIM of 1.75-1.80%, low single digit loan growth, high single to double digit fee income growth and credit costs to  normalise  at around 25-30bps. 
 
DBS&rsquo 3Q25  adjusted earnings of S$3bn were slightly above our estimates, with 9M25 earnings at 77% of our FY25e forecast. 3Q25  DPS raised 39% YoY to 75 cents (including 15cents capital return). Highlights include stable net interest income of S$3.58bn (-1% YoY) despite NIMs declining to 1.96% (-15bps YoY) as loans grew 5% YoY. Fee income rose 22% YoY from continued growth in wealth management fees, while markets trading income surged 33% YoY from higher equity derivative activity. Credit costs inched up 1bps YoY to 15bps as total provisions fell 5% YoY. DBS has provided FY26e guidance of PATMI growth to be slightly lower YoY from lower NII offset by  high single digit growth in commercial book non-interest income, cost-to-income ratio around the low-40% range and credit cost at around 17-20bps with potential for GP writebacks.   

 

Tmr DBS and UOB will be giving out their report card in the morning ( before mkt opens) and then OCBC on Friday . 
Ocbc can expect a reasonable set of result as GE is already doing well . But I dont think OCBC result will be very good. Flat

DBS is going to offer a surprise ? Or wld it be UOB ....honestly w full integration of Visa into UOB group ....they should be more then able to 
cover the interest rate change. 

Whatever DBS is only bank that is giving out dividend ...and the 75c is no surprise . ( will remain ) 

What is interesting would b the ability to support their share prices w SBB after XD ( in Nov) 
Certainly looking forward to tmr. 
Happy investing. 

 

Looking at the rise ....and IF comes w a good set of result on 6th Nov ....this $20 gap w uob is possible by early Nov
OCBC is less that 1/3 the price of DBS now. 

So SBB, good dividend and most important a strong management is needed in this small red dot. 
( the 3 banks really tell a lot about mgt capability ) 

Time ( end 2025)....more can be told about these 3 banks ( by then another interest cut ? )
DYODD

FATABA      ( Date: 07-Oct-2025 11:10) Posted: Haha you are right .....$19 coming $20  Thanks pkli899      ( Date: 07-Oct-2025 11:03) Posted: Should be almost $19 above UOB.....lol.

 

Haha you are right .....$19 coming $20 
Thanks

pkli899      ( Date: 07-Oct-2025 11:03) Posted: Should be almost $19 above UOB.....lol.

 

Should be almost $19 above UOB.....lol.

 

Wow close to a mth after my last posting .....DBS has powered STI to above 4450
Now a clear $9 above UOB .  hitting an all time high again 
Will a $10 gap comes ? UOB is weighted by the $1.2B loan in HK property ....hmm

Will the claimed 5000 pts STI appear ....I dont know
What I know is that most stock are fully valued . DBS are over 2.2X and coming result on 6th Nov better justify this performance.
Invest w caution. 
Happy investing. 

 

After this morning rise .....read some mentioned that it could be due to a bonus issue. 
LOL, this wld not happen at Q3 ......IF it will happen it would still be end of full year 2025 result . 

More so , do not forget the application to buy Alliance bank is still awaiting outcome ( yes it is NOT over but awaiting the slow Msia side LOL ) 
After all,  w good economy tie up ....it could happen ( just maybe more delay and negotiation .) After all OCBC and  UOB are already in Msia

This will be a real catalyst for DBS as Msia is an important mkt . 
DYODD ..it is a possibility not a sure must.

 

wow DBS is up 3.5% to a new record ...STI also up... coming up to 4350?
However we must note that OCBC and UOB are NOT in the same mode. 

For any interest cut ( qtr point ?) will  to be strong headwinds for OC and UOB on their NIM
Looks like DBS is behaving on its own path ....certainly the strong fundamental build up by ex CEO is solid for this counter. 
At current $3 dividend a year....it is still good yield at 5+% at $53/54 ......good investment grade stock . Profit taking might set in . 

Definately the coming weeks into Q4... will see more volatilety in this market . 
Happy investing and good luck 

 

Today the banks are bouncing back ......much of it was also due to the heavy selling over the past few days ( since XD) 

One thing is that the dividend payout is v good 
6%  * assume 3 dollar at $50
6.2% assume $2.2 dollar at $35
I have left OCBC .....more so as I really dont know much about this new CEO. Let a few qtr past before we can tell . 

On the other hand that Jackson' s Hole meeting is coming up .....qtr pt is more or less certain OR would there be 2x qtr pts till end of the year
This might not be very positive for the banks ? Or would it be good for business (and also good for banks)....time will tell 
Happy trading. 

 

 

A correction would affect everyone ...just a matter of how deep it would be . 
( some say 4000 strong support on STI which I agree) 

However the negatives are coming up 
...Gaza if take over by Israel ....would there be peace in ME? 
...Russia ...would they give back Ukraine ? LOL and so what wld happen 
...Tarrif starts to kick in ....
...Interest rate cut ? 

Stay cautious .....look at what happen to SCI ....LOl so what if they get the nuclear power plant ....this wld take at least 10 years to materialise . 
On the other hand its share price is coming down closer to $6.  Same for CapitalandInvest ...etc
More so is that IF a counter can be profitable and pay its debt ( dont even talk about its dividend) ....when tough time comes. 

Result and continue growth is the real thing for a counter to stay stable over longer term 
Be cautious and watch the development over the next days and weeks .
Good luck 

 

 

Stay cautious ....the correction on the 3 banks have started . 
Next week interest rate will be more important ...if it is the qtr point ....I guess it is more or less expected or factor in .
However, if a half point cut ....it might affect the banks more
DYODD and good luck

 

( My personal view .....DYODD) 
with DBS xd today .....the only remaining bank to xd wld be UOB tmr. 
Looking at the over $1 dropped earlier ......has DBS shot up to aggressively .  NO comment is value without a time line .
Longer term , yes dbs is still growing ....but short term till next qtr, it might correct ? 

In fact UOB has not rise as fast and much as compared to DBS ...so will its correction be less then its dividend > well we were know tmr. 

As our banks are major part of STI .......will STI cross 4500 this year ?  Many has put this on the 5B investment from SGX. 
On the other hand .....not all big cap will benefit from this ( more so it will have some support from their own SBB) 
Interest rate cut will happened at least once in 2H . ( or twice ? ) 

I definately do not see as strong growth in 2H but dividend should be maintained by our banks ( esp DBS) 
DYODD
 

 

By now .....DBS is certainly the clear leader of all 3 banks locally ....and the gap w UOB is a cool $15 ( wow after 1H result) 
some say catching up ....or would this gap be even wider after the full year 2025 . 
OCBC remains as quiet ...maybe take time for new ceo to show his capability or ??

Anyway ....wishing all a Happy National day .   

 

Just within a day of result for UOB and dbs ........it is now a cool $14 behind dbs. 
( a few years ago ...it was more then dbs and having a higher book value still.) ....does the different in management of these 2 companies
cause this major shift over the last decade ?  And what could happen in the next 5/10 years 
DYODD

FATABA      ( Date: 07-Aug-2025 15:35) Posted: Wow DBS hit $50 ....for those who are holding on to 20 lots ( 20000 shares) ...u hit $1M nett worth.  Congratulations.

 

Wow DBS hit $50 ....for those who are holding on to 20 lots ( 20000 shares) ...u hit $1M nett worth. 
Congratulations. 

 

looking at dbs key data yoy, it is impressive in this environment except for roe down from 18.2 to 16.7.
qoq roe 17 to 16.7 is a good sign. 50$ either today or tomorrow driven by both sentiment & fundamentals. Congrats to dbs holders haha

 

So looking at all 3 banks result .....DBS is still the best performing bank here .....could hit $50 by 14th Aug ....congrate to all DBS holders DYODD
Happy investing. 

This morning&rsquo s insight: DBS & UOB 2Q25 results - one in line, one weaker than already subdued expectations 

DBS:
Profit after tax and minority interests (PATMI) of S$2.82 billion for 2Q25 and S$5.72 billion for 1H25, and total interim dividend of 75 cents were all in line with expectations
Its solid fee income was led by wealth: +25% year on year (YoY), though down 10% quarter on quarter (QoQ).
Wealth AUM rose S$10 billion (+2% QoQ). Asset quality remained strong with the non performing ratio declining 0.1% to 1.0%
Its net interest margins however, was down 0.07% QoQ to 2.1%

UOB:
PATMI of S$1.34 billion for 2Q25 and S$2.83 billion for 1H25 missed estimates by around 7%.
The result is prior to the bank building a general provisions buffer, suggesting further earnings headwinds to come
UOB shares are down 1.6% to $35.86 as of 910AM, backpedalling its share price gains this week

 

Looking at the rise of DBS ......tmr result should be fine ...and even w a little surprise . 
$49 seem very close . 
UOB on the other hand is lying aro 36.40 ....affected more or less by OCBC result ? 
It dividend payout might be on the special since it is their 90 anniversay ....DYODD
Happy investing. 

 

Yes, UOB has its 25c  special for this 1H and there is also a hope for something special 90th anniversary : LOL 
DYODD

pkli899      ( Date: 01-Aug-2025 13:41) Posted: Hopefully is only OCBC.  The other two better. At the least equal to their previous qtr.