Rate Of ReturnI vote for DBS. Here's why:
DBS reported net profit of S$2.93 billion in 1Q26, another record for the bank and up 1% year-on-year. This was despite a challenging interest rate environment, which led to net interest margin compression and a 5% year-on-year decline in group net interest income to S$3.49 billion.
Even though OCBC's EPS have been on average stronger than DBS's in the past 3 years (33% vs 21%), DBS has still managed to give out higher dividend yield + capital gains as compared to OCBC. A high dividend payout ratio of 80% and strong consistent capital gains would more likely attract investors to DBS, though OCBC is not too far behind as well.
All in all, I believe DBS will continue its strong form and lead the STI ahead of the other 2 major local banks, but I also won't be surprised if we do see a little profit taking after earnings this week.
🇸🇬 Earnings Season Challenge #4: DBS, OCBC & UOB Report — Who Wins the Week?
Three counters, more than half the STI, all reporting inside 48 hours — in the week before National Day. $DBS(D05.SG) goes first on Thursday morning, with $OCBC Bank(O39.SG) and $UOB(U11.SG) one day b...
Which of the three wins this week?
Single Choice
- DBS74%
- OCBC22%
- UOB2%
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