DBS, UOB or OCBC: Which Singapore Bank Should You Pick for Your Investment Portfolio?

The Smart Investor08-12

The local banks are in the spotlight as the US Central Bank hinted that it may proceed with an interest rate cut this September.This earnings season has seen DBS Group Holdings, UOB, and ocbc bank ...

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Comments

tjen
08-13
tjen
DBS
Home22
08-12
Home22
DBS
Gvy
08-12
Gvy
Good article comparing the important features From all 3 banks.
Cosmograph
08-12
Cosmograph
If only it were that simple.... But thanks for sharing..

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OCBC continued to maintain a low CIR quarter-on-quarter with CIR rising by just 0.07 percentage points.Although DBS had a fairly low CIR in 1Q 2024, Singapore’s largest bank saw its CIR jump by 2.2 percentage points to 39.6% in the current quarter.Winner: OCBCNon-performing loans (NPL) ratioSource: DBS, UOB and OCBC Earnings ReportsWe move on to the non-performing loans (NPL) ratio next.OCBC has not only the lowest NPL ratio of the three banks at 0.9% but also saw a year-on-year improvement of 0.2 percentage points, making it the clear winner.Winner: OCBCDividend yieldSource: DBS, UOB and OCBC Earnings ReportsThis next attribute, dividend yield, should be a favourite with income investors.With all three banks declaring a dividend for the first half of 2024, we compared each lender’s trailing 12-month dividend yield.Both DBS and OCBC are tied for this attribute with a 6% trailing dividend yield.However, investors should note that DBS pays out a quarterly dividend compared to half-yearly for the other two banks.At the current rate of S$0.54 per share, the annualised dividend for DBS is S$2.16, which gives the bank a forward dividend yield of 6.4%.Winner: DBSValuationSource: DBS, UOB and OCBC Earnings ReportsFinally, we look at each bank’s valuation to determine which offers the most value.UOB has the lowest valuation of the three banks with OCBC coming in at a close second, based on each bank’s latest price-to-book ratio.DBS is the most expensive of the trio with a price-to-book ratio of more than 1.5 times.Winner: UOBGet Smart: OCBC wins hands downOCBC wins by ticking off most of the attributes listed here.Not only did the lender chalk up the best year-on-year profit increase, but it also boasted the highest NIM and the lowest CIR.Investors can also enjoy a 6% trailing dividend yield if they purchase shares of OCBC and its valuation remains undemanding at just 1.16 times price-to-book.However, income investors who prefer to receive quarterly dividends should look favourably on DBS as it is the only bank out of the three to pay dividends every three months.","kind":null,"is_publish_news":true,"is_publish_highlight":true,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[{"id":337983478837528,"gmtCreate":1723516108981,"gmtModify":1723516112237,"author":{"id":"4093782659981070","authorId":"4093782659981070","name":"tjen","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"hat":"https://static.tigerbbs.com/0a8758340a08196056f8bc1e54805193","crmLevel":6,"crmLevelSwitch":0,"authorIdStr":"4093782659981070","idStr":"4093782659981070"},"htmlText":"DBS","listText":"DBS","text":"DBS","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/337983478837528","repostId":2458708614,"repostType":2,"repost":{"id":"2458708614","pubTimestamp":1723427090,"share":"https://ttm.financial/m/news/2458708614?lang=&edition=fundamental","pubTime":"2024-08-12 09:44","market":"sg","language":"en","title":"DBS, UOB or OCBC: Which Singapore Bank Should You Pick for Your Investment Portfolio?","url":"https://stock-news.laohu8.com/highlight/detail?id=2458708614","media":"The Smart Investor","summary":"We compare the three banks after they released their latest earnings to see which makes the best pick for your portfolio.","content":"<html><head></head><body><p>The local banks are in the spotlight as the US Central Bank hinted that it may proceed with an interest rate cut this September.</p><p style=\"text-align: start;\">This earnings season has seen  <a href=\"https://laohu8.com/S/D05.SI\">DBS Group Holdings</a>,  <a href=\"https://laohu8.com/S/U11.SI\">UOB</a>, and  <a href=\"https://laohu8.com/S/O39.SI\">ocbc bank</a>  releasing strong sets of earnings as high interest rates buoy their net interest income.</p><p style=\"text-align: start;\">Investors may be wondering which of these blue-chip banks stand the best chance of doing well should interest rates fall.</p><p style=\"text-align: start;\">Let’s go through several attributes to compare the trio and arrive at a conclusion as to which makes the most compelling choice for your portfolio.</p><h2 id=\"id_4103716321\">Financial performance</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/40e2d7fe3f869ea67d1c0044d7bd12dc\" tg-width=\"807\" tg-height=\"276\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>With all three banks having reported their second quarter of 2024 (2Q 2024) earnings, we compare how each bank did for total income, profit before allowances, and net profit.</p><p>It was a mixed result as DBS logged the best year-on-year increase in total income with an 8.7% rise.</p><p>OCBC came in second with a 5% year-on-year increase in total income to S$3.6 billion for the quarter.</p><p>Looking at the profit before allowances, both DBS and OCBC were neck and neck with a 6%+ year-on-year increase.</p><p>OCBC came out tops when it came to net profit as the lender saw a 43% year-on-year decline in allowances.</p><p>DBS, on the other hand, recorded a general provision of S$51 million for 2Q 2024 compared to a write-back of provisions of S$42 million in the prior year.</p><p>As a result, OCBC chalked up an impressive 13.7% year-on-year increase in net profit to S$1.9 billion.</p><p><strong>Winner: OCBC</strong></p><h2 id=\"id_4202182282\">Net interest margins and loan growth</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/c196ac923bda98864566d780295aa24b\" tg-width=\"807\" tg-height=\"306\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>Next, we move on to each bank’s net interest margin (NIM) and scrutinise the loan book.</p><p>UOB tops the list with a year-on-year increase of 2.7% for its loan book.</p><p>However, UOB has the lowest NIM of the three banks at 2.05% for 2Q 2024.</p><p>OCBC is the winner when it comes to NIM as it boasts the highest NIM for not just 2Q 2024, but also 2Q 2023 and the previous quarter (1Q 2024).</p><p>However, investors should note that DBS saw the gentlest year-on-year decline in its NIM of just 0.02 percentage points compared with its peers.</p><p><strong>Winner: OCBC</strong></p><h2 id=\"id_3124834152\">Cost-to-income ratio (CIR)</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/91624408a39361d494bbe96cd980d681\" tg-width=\"807\" tg-height=\"218\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>The next attribute we are comparing is each bank’s cost-to-income ratio or CIR.</p><p>A lower CIR implies that the bank is more efficient at running its business as its expenses are a lower proportion of its total income.</p><p>Again, OCBC is the winner with a CIR of just 37.8% for 2Q 2024. OCBC continued to maintain a low CIR quarter-on-quarter with CIR rising by just 0.07 percentage points.</p><p>Although DBS had a fairly low CIR in 1Q 2024, Singapore’s largest bank saw its CIR jump by 2.2 percentage points to 39.6% in the current quarter.</p><h3 id=\"id_3029462504\">Winner: OCBC</h3><p><strong>Non-performing loans (NPL) ratio</strong></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ef5ed99dec5eb74e529adcafdae46f9d\" tg-width=\"808\" tg-height=\"218\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>We move on to the non-performing loans (NPL) ratio next.</p><p>OCBC has not only the lowest NPL ratio of the three banks at 0.9% but also saw a year-on-year improvement of 0.2 percentage points, making it the clear winner.</p><p><strong>Winner: OCBC</strong></p><h2 id=\"id_602062426\">Dividend yield</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/4cbe18089e5758225c77bb425d1a3083\" tg-width=\"807\" tg-height=\"247\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>This next attribute, dividend yield, should be a favourite with income investors.</p><p>With all three banks declaring a dividend for the first half of 2024, we compared each lender’s trailing 12-month dividend yield.</p><p>Both DBS and OCBC are tied for this attribute with a 6% trailing dividend yield.</p><p>However, investors should note that DBS pays out a quarterly dividend compared to half-yearly for the other two banks.</p><p>At the current rate of S$0.54 per share, the annualised dividend for DBS is S$2.16, which gives the bank a forward dividend yield of 6.4%.</p><p><strong>Winner: DBS</strong></p><h2 id=\"id_3907985662\">Valuation</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a94934f7b50b7ef98bae0e2e3eb069c0\" tg-width=\"807\" tg-height=\"215\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>Finally, we look at each bank’s valuation to determine which offers the most value.</p><p>UOB has the lowest valuation of the three banks with OCBC coming in at a close second, based on each bank’s latest price-to-book ratio.</p><p>DBS is the most expensive of the trio with a price-to-book ratio of more than 1.5 times.</p><p><strong>Winner: UOB</strong></p><h2 id=\"id_3394165249\">Get Smart: OCBC wins hands down</h2><p>OCBC wins by ticking off most of the attributes listed here.</p><p>Not only did the lender chalk up the best year-on-year profit increase, but it also boasted the highest NIM and the lowest CIR.</p><p>Investors can also enjoy a 6% trailing dividend yield if they purchase shares of OCBC and its valuation remains undemanding at just 1.16 times price-to-book.</p><p>However, income investors who prefer to receive quarterly dividends should look favourably on DBS as it is the only bank out of the three to pay dividends every three months.</p><p></p><p></p></body></html>","source":"thesmartinvestor_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>DBS, UOB or OCBC: Which Singapore Bank Should You Pick for Your Investment Portfolio?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ 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}\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDBS, UOB or OCBC: Which Singapore Bank Should You Pick for Your Investment Portfolio?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-12 09:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/dbs-uob-or-ocbc-which-singapore-bank-should-you-pick-for-your-investment-portfolio/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The local banks are in the spotlight as the US Central Bank hinted that it may proceed with an interest rate cut this September.This earnings season has seen  DBS Group Holdings,  UOB, and  ocbc bank ...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/dbs-uob-or-ocbc-which-singapore-bank-should-you-pick-for-your-investment-portfolio/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0672654166.SGD":"FTIF - Templeton Asian Growth A (acc) 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(SGD) ACC","LU0831093199.SGD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AM3\" (SGDHDG) INC","LU0261947096.USD":"FIDELITY FUNDS  SUSTAINABLE ASIA EQUITY \"A\" (USD) ACC","LU0516422440.USD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"A\" (USD) ACC","LU0516422366.SGD":"Fullerton Lux Funds - Asia Focus Equities A Acc SGD","IE0032834883.USD":"FSSA ASIAN EQUITY PLUS \"I\" (USD) INC","LU0898667661.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD-H","SG9999000327.SGD":"Schroder Asian Growth A Dis SGD","SG9999013478.USD":"利安新加坡股息基金","LU0192582467.USD":"SCHRODER ISF ASIAN EQUITY YIELD \"A\" (USD) INC MF","LU0205439572.USD":"富达亚太股息基金","SG9999013460.SGD":"LionGlobal Singapore Dividend Equity Fund SGD","SG9999001903.USD":"Aberdeen Standard Pacific Equity USD","SG9999000343.SGD":"Schroder Singapore Trust A Dis SGD"},"source_url":"https://thesmartinvestor.com.sg/dbs-uob-or-ocbc-which-singapore-bank-should-you-pick-for-your-investment-portfolio/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2458708614","content_text":"The local banks are in the spotlight as the US Central Bank hinted that it may proceed with an interest rate cut this September.This earnings season has seen  DBS Group Holdings,  UOB, and  ocbc bank  releasing strong sets of earnings as high interest rates buoy their net interest income.Investors may be wondering which of these blue-chip banks stand the best chance of doing well should interest rates fall.Let’s go through several attributes to compare the trio and arrive at a conclusion as to which makes the most compelling choice for your portfolio.Financial performanceSource: DBS, UOB and OCBC Earnings ReportsWith all three banks having reported their second quarter of 2024 (2Q 2024) earnings, we compare how each bank did for total income, profit before allowances, and net profit.It was a mixed result as DBS logged the best year-on-year increase in total income with an 8.7% rise.OCBC came in second with a 5% year-on-year increase in total income to S$3.6 billion for the quarter.Looking at the profit before allowances, both DBS and OCBC were neck and neck with a 6%+ year-on-year increase.OCBC came out tops when it came to net profit as the lender saw a 43% year-on-year decline in allowances.DBS, on the other hand, recorded a general provision of S$51 million for 2Q 2024 compared to a write-back of provisions of S$42 million in the prior year.As a result, OCBC chalked up an impressive 13.7% year-on-year increase in net profit to S$1.9 billion.Winner: OCBCNet interest margins and loan growthSource: DBS, UOB and OCBC Earnings ReportsNext, we move on to each bank’s net interest margin (NIM) and scrutinise the loan book.UOB tops the list with a year-on-year increase of 2.7% for its loan book.However, UOB has the lowest NIM of the three banks at 2.05% for 2Q 2024.OCBC is the winner when it comes to NIM as it boasts the highest NIM for not just 2Q 2024, but also 2Q 2023 and the previous quarter (1Q 2024).However, investors should note that DBS saw the gentlest year-on-year decline in its NIM of just 0.02 percentage points compared with its peers.Winner: OCBCCost-to-income ratio (CIR)Source: DBS, UOB and OCBC Earnings ReportsThe next attribute we are comparing is each bank’s cost-to-income ratio or CIR.A lower CIR implies that the bank is more efficient at running its business as its expenses are a lower proportion of its total income.Again, OCBC is the winner with a CIR of just 37.8% for 2Q 2024. OCBC continued to maintain a low CIR quarter-on-quarter with CIR rising by just 0.07 percentage points.Although DBS had a fairly low CIR in 1Q 2024, Singapore’s largest bank saw its CIR jump by 2.2 percentage points to 39.6% in the current quarter.Winner: OCBCNon-performing loans (NPL) ratioSource: DBS, UOB and OCBC Earnings ReportsWe move on to the non-performing loans (NPL) ratio next.OCBC has not only the lowest NPL ratio of the three banks at 0.9% but also saw a year-on-year improvement of 0.2 percentage points, making it the clear winner.Winner: OCBCDividend yieldSource: DBS, UOB and OCBC Earnings ReportsThis next attribute, dividend yield, should be a favourite with income investors.With all three banks declaring a dividend for the first half of 2024, we compared each lender’s trailing 12-month dividend yield.Both DBS and OCBC are tied for this attribute with a 6% trailing dividend yield.However, investors should note that DBS pays out a quarterly dividend compared to half-yearly for the other two banks.At the current rate of S$0.54 per share, the annualised dividend for DBS is S$2.16, which gives the bank a forward dividend yield of 6.4%.Winner: DBSValuationSource: DBS, UOB and OCBC Earnings ReportsFinally, we look at each bank’s valuation to determine which offers the most value.UOB has the lowest valuation of the three banks with OCBC coming in at a close second, based on each bank’s latest price-to-book ratio.DBS is the most expensive of the trio with a price-to-book ratio of more than 1.5 times.Winner: UOBGet Smart: OCBC wins hands downOCBC wins by ticking off most of the attributes listed here.Not only did the lender chalk up the best year-on-year profit increase, but it also boasted the highest NIM and the lowest CIR.Investors can also enjoy a 6% trailing dividend yield if they purchase shares of OCBC and its valuation remains undemanding at just 1.16 times price-to-book.However, income investors who prefer to receive quarterly dividends should look favourably on DBS as it is the only bank out of the three to pay dividends every three months.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":337702118428768,"gmtCreate":1723467404153,"gmtModify":1723467407554,"author":{"id":"4103282816795650","authorId":"4103282816795650","name":"Home22","avatar":"https://community-static.tradeup.com/news/3e5e55b062ffe0c519cbef858d125a27","vip":1,"crmLevel":4,"crmLevelSwitch":0,"authorIdStr":"4103282816795650","idStr":"4103282816795650"},"htmlText":"DBS","listText":"DBS","text":"DBS","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/337702118428768","repostId":2458708614,"repostType":2,"repost":{"id":"2458708614","pubTimestamp":1723427090,"share":"https://ttm.financial/m/news/2458708614?lang=&edition=fundamental","pubTime":"2024-08-12 09:44","market":"sg","language":"en","title":"DBS, UOB or OCBC: Which Singapore Bank Should You Pick for Your Investment Portfolio?","url":"https://stock-news.laohu8.com/highlight/detail?id=2458708614","media":"The Smart Investor","summary":"We compare the three banks after they released their latest earnings to see which makes the best pick for your portfolio.","content":"<html><head></head><body><p>The local banks are in the spotlight as the US Central Bank hinted that it may proceed with an interest rate cut this September.</p><p style=\"text-align: start;\">This earnings season has seen  <a href=\"https://laohu8.com/S/D05.SI\">DBS Group Holdings</a>,  <a href=\"https://laohu8.com/S/U11.SI\">UOB</a>, and  <a href=\"https://laohu8.com/S/O39.SI\">ocbc bank</a>  releasing strong sets of earnings as high interest rates buoy their net interest income.</p><p style=\"text-align: start;\">Investors may be wondering which of these blue-chip banks stand the best chance of doing well should interest rates fall.</p><p style=\"text-align: start;\">Let’s go through several attributes to compare the trio and arrive at a conclusion as to which makes the most compelling choice for your portfolio.</p><h2 id=\"id_4103716321\">Financial performance</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/40e2d7fe3f869ea67d1c0044d7bd12dc\" tg-width=\"807\" tg-height=\"276\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>With all three banks having reported their second quarter of 2024 (2Q 2024) earnings, we compare how each bank did for total income, profit before allowances, and net profit.</p><p>It was a mixed result as DBS logged the best year-on-year increase in total income with an 8.7% rise.</p><p>OCBC came in second with a 5% year-on-year increase in total income to S$3.6 billion for the quarter.</p><p>Looking at the profit before allowances, both DBS and OCBC were neck and neck with a 6%+ year-on-year increase.</p><p>OCBC came out tops when it came to net profit as the lender saw a 43% year-on-year decline in allowances.</p><p>DBS, on the other hand, recorded a general provision of S$51 million for 2Q 2024 compared to a write-back of provisions of S$42 million in the prior year.</p><p>As a result, OCBC chalked up an impressive 13.7% year-on-year increase in net profit to S$1.9 billion.</p><p><strong>Winner: OCBC</strong></p><h2 id=\"id_4202182282\">Net interest margins and loan growth</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/c196ac923bda98864566d780295aa24b\" tg-width=\"807\" tg-height=\"306\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>Next, we move on to each bank’s net interest margin (NIM) and scrutinise the loan book.</p><p>UOB tops the list with a year-on-year increase of 2.7% for its loan book.</p><p>However, UOB has the lowest NIM of the three banks at 2.05% for 2Q 2024.</p><p>OCBC is the winner when it comes to NIM as it boasts the highest NIM for not just 2Q 2024, but also 2Q 2023 and the previous quarter (1Q 2024).</p><p>However, investors should note that DBS saw the gentlest year-on-year decline in its NIM of just 0.02 percentage points compared with its peers.</p><p><strong>Winner: OCBC</strong></p><h2 id=\"id_3124834152\">Cost-to-income ratio (CIR)</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/91624408a39361d494bbe96cd980d681\" tg-width=\"807\" tg-height=\"218\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>The next attribute we are comparing is each bank’s cost-to-income ratio or CIR.</p><p>A lower CIR implies that the bank is more efficient at running its business as its expenses are a lower proportion of its total income.</p><p>Again, OCBC is the winner with a CIR of just 37.8% for 2Q 2024. OCBC continued to maintain a low CIR quarter-on-quarter with CIR rising by just 0.07 percentage points.</p><p>Although DBS had a fairly low CIR in 1Q 2024, Singapore’s largest bank saw its CIR jump by 2.2 percentage points to 39.6% in the current quarter.</p><h3 id=\"id_3029462504\">Winner: OCBC</h3><p><strong>Non-performing loans (NPL) ratio</strong></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ef5ed99dec5eb74e529adcafdae46f9d\" tg-width=\"808\" tg-height=\"218\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>We move on to the non-performing loans (NPL) ratio next.</p><p>OCBC has not only the lowest NPL ratio of the three banks at 0.9% but also saw a year-on-year improvement of 0.2 percentage points, making it the clear winner.</p><p><strong>Winner: OCBC</strong></p><h2 id=\"id_602062426\">Dividend yield</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/4cbe18089e5758225c77bb425d1a3083\" tg-width=\"807\" tg-height=\"247\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>This next attribute, dividend yield, should be a favourite with income investors.</p><p>With all three banks declaring a dividend for the first half of 2024, we compared each lender’s trailing 12-month dividend yield.</p><p>Both DBS and OCBC are tied for this attribute with a 6% trailing dividend yield.</p><p>However, investors should note that DBS pays out a quarterly dividend compared to half-yearly for the other two banks.</p><p>At the current rate of S$0.54 per share, the annualised dividend for DBS is S$2.16, which gives the bank a forward dividend yield of 6.4%.</p><p><strong>Winner: DBS</strong></p><h2 id=\"id_3907985662\">Valuation</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a94934f7b50b7ef98bae0e2e3eb069c0\" tg-width=\"807\" tg-height=\"215\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>Finally, we look at each bank’s valuation to determine which offers the most value.</p><p>UOB has the lowest valuation of the three banks with OCBC coming in at a close second, based on each bank’s latest price-to-book ratio.</p><p>DBS is the most expensive of the trio with a price-to-book ratio of more than 1.5 times.</p><p><strong>Winner: UOB</strong></p><h2 id=\"id_3394165249\">Get Smart: OCBC wins hands down</h2><p>OCBC wins by ticking off most of the attributes listed here.</p><p>Not only did the lender chalk up the best year-on-year profit increase, but it also boasted the highest NIM and the lowest CIR.</p><p>Investors can also enjoy a 6% trailing dividend yield if they purchase shares of OCBC and its valuation remains undemanding at just 1.16 times price-to-book.</p><p>However, income investors who prefer to receive quarterly dividends should look favourably on DBS as it is the only bank out of the three to pay dividends every three months.</p><p></p><p></p></body></html>","source":"thesmartinvestor_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>DBS, UOB or OCBC: Which Singapore Bank Should You Pick for Your Investment Portfolio?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ 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}\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDBS, UOB or OCBC: Which Singapore Bank Should You Pick for Your Investment Portfolio?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-12 09:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/dbs-uob-or-ocbc-which-singapore-bank-should-you-pick-for-your-investment-portfolio/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The local banks are in the spotlight as the US Central Bank hinted that it may proceed with an interest rate cut this September.This earnings season has seen  DBS Group Holdings,  UOB, and  ocbc bank ...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/dbs-uob-or-ocbc-which-singapore-bank-should-you-pick-for-your-investment-portfolio/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0672654166.SGD":"FTIF - Templeton Asian Growth A (acc) SGD-H1","SG9999006266.SGD":"MANULIFE SINGAPORE EQUITY \"A\" (SGD) ACC","LU0011963245.USD":"abrdn SICAV I ASIA PACIFIC SUSTAINAB  LE EQUITY \"A\" (USD) ACC","LU0543330483.HKD":"TEMPLETON ASIAN GROWTH \"A\" (HKD) ACC","IE00B97KM107.HKD":"FSSA ASIAN EQUITY PLUS \"I\" (HKD) ACC","LU0557290698.USD":"施罗德环球可持续增长基金","LU0061477393.USD":"CT (LUX) I ASIA EQUITY INCOME \"AU\" (USD) ACC","LU0516423091.SGD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (SGD) ACC","SG9999014302.SGD":"RHB Singapore Income Fund SGD","LU0823397103.USD":"BNP PARIBAS SUSTAINABLE ASIA EX-JAPAN EQUITY \"C\" (USD) ACC","LU2257852520.SGD":"JPMorgan Funds - Asia Growth A (acc) SGD","SG9999000475.SGD":"Aberdeen Standard Singapore Equity SGD","LU0823417653.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) ACC","LU1105468828.SGD":"Allianz Total Return Asian Equity AM DIS H2-SGD","O39.SI":"华侨银行","LU1282649067.USD":"ALLIANZ ASIAN MULTI INCOME PLUS \"AMG\" (USD) INC A","LU1981816686.USD":"EASTSPRING INV ASIAN MULTI FACTOR EQUITY \"A\" (USD) ACC","U11.SI":"大华银行","SG9999002414.USD":"LIONGLOBAL SINGAPORE TRUST (USD) ACC","SG9999000459.SGD":"Aberdeen Standard Pacific Equity SGD","SGXZ24219693.SGD":"UNITED SG DYNAMIC INCOME FUND \"A\" (SGD) INC","LU0261945553.USD":"FIDELITY ASEAN \"A\" ACC","LU0821914370.USD":"贝莱德亚洲成长领袖A2","LU0532188223.SGD":"JPMorgan Funds - ASEAN Equity A (acc) SGD","LU0831103253.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD","LU0188438112.USD":"SCHRODER ISF ASIAN EQUITY YIELD \"A\" ACC","IE00B067MR52.USD":"FSSA ASIAN EQUITY PLUS \"I\" (USD) ACC","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","SG9999016042.SGD":"Schroder Singapore Trust A Acc SGD","SGXZ27511609.SGD":"NIKKO AM SINGAPORE DIVIDEND EQUITY \"SGD\" (SGD) ACC","IE0031814969.USD":"FSSA ASEAN ALL CAP FUND \"I\" (USD) ACC","D05.SI":"星展集团控股","LU0572939691.SGD":"Janus Henderson Horizon Asian Dividend Income A2 SGD","LU0577902371.SGD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (SGD) ACC","LU0831093199.SGD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AM3\" (SGDHDG) INC","LU0261947096.USD":"FIDELITY FUNDS  SUSTAINABLE ASIA EQUITY \"A\" (USD) ACC","LU0516422440.USD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"A\" (USD) ACC","LU0516422366.SGD":"Fullerton Lux Funds - Asia Focus Equities A Acc SGD","IE0032834883.USD":"FSSA ASIAN EQUITY PLUS \"I\" (USD) INC","LU0898667661.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD-H","SG9999000327.SGD":"Schroder Asian Growth A Dis SGD","SG9999013478.USD":"利安新加坡股息基金","LU0192582467.USD":"SCHRODER ISF ASIAN EQUITY YIELD \"A\" (USD) INC MF","LU0205439572.USD":"富达亚太股息基金","SG9999013460.SGD":"LionGlobal Singapore Dividend Equity Fund SGD","SG9999001903.USD":"Aberdeen Standard Pacific Equity USD","SG9999000343.SGD":"Schroder Singapore Trust A Dis SGD"},"source_url":"https://thesmartinvestor.com.sg/dbs-uob-or-ocbc-which-singapore-bank-should-you-pick-for-your-investment-portfolio/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2458708614","content_text":"The local banks are in the spotlight as the US Central Bank hinted that it may proceed with an interest rate cut this September.This earnings season has seen  DBS Group Holdings,  UOB, and  ocbc bank  releasing strong sets of earnings as high interest rates buoy their net interest income.Investors may be wondering which of these blue-chip banks stand the best chance of doing well should interest rates fall.Let’s go through several attributes to compare the trio and arrive at a conclusion as to which makes the most compelling choice for your portfolio.Financial performanceSource: DBS, UOB and OCBC Earnings ReportsWith all three banks having reported their second quarter of 2024 (2Q 2024) earnings, we compare how each bank did for total income, profit before allowances, and net profit.It was a mixed result as DBS logged the best year-on-year increase in total income with an 8.7% rise.OCBC came in second with a 5% year-on-year increase in total income to S$3.6 billion for the quarter.Looking at the profit before allowances, both DBS and OCBC were neck and neck with a 6%+ year-on-year increase.OCBC came out tops when it came to net profit as the lender saw a 43% year-on-year decline in allowances.DBS, on the other hand, recorded a general provision of S$51 million for 2Q 2024 compared to a write-back of provisions of S$42 million in the prior year.As a result, OCBC chalked up an impressive 13.7% year-on-year increase in net profit to S$1.9 billion.Winner: OCBCNet interest margins and loan growthSource: DBS, UOB and OCBC Earnings ReportsNext, we move on to each bank’s net interest margin (NIM) and scrutinise the loan book.UOB tops the list with a year-on-year increase of 2.7% for its loan book.However, UOB has the lowest NIM of the three banks at 2.05% for 2Q 2024.OCBC is the winner when it comes to NIM as it boasts the highest NIM for not just 2Q 2024, but also 2Q 2023 and the previous quarter (1Q 2024).However, investors should note that DBS saw the gentlest year-on-year decline in its NIM of just 0.02 percentage points compared with its peers.Winner: OCBCCost-to-income ratio (CIR)Source: DBS, UOB and OCBC Earnings ReportsThe next attribute we are comparing is each bank’s cost-to-income ratio or CIR.A lower CIR implies that the bank is more efficient at running its business as its expenses are a lower proportion of its total income.Again, OCBC is the winner with a CIR of just 37.8% for 2Q 2024. OCBC continued to maintain a low CIR quarter-on-quarter with CIR rising by just 0.07 percentage points.Although DBS had a fairly low CIR in 1Q 2024, Singapore’s largest bank saw its CIR jump by 2.2 percentage points to 39.6% in the current quarter.Winner: OCBCNon-performing loans (NPL) ratioSource: DBS, UOB and OCBC Earnings ReportsWe move on to the non-performing loans (NPL) ratio next.OCBC has not only the lowest NPL ratio of the three banks at 0.9% but also saw a year-on-year improvement of 0.2 percentage points, making it the clear winner.Winner: OCBCDividend yieldSource: DBS, UOB and OCBC Earnings ReportsThis next attribute, dividend yield, should be a favourite with income investors.With all three banks declaring a dividend for the first half of 2024, we compared each lender’s trailing 12-month dividend yield.Both DBS and OCBC are tied for this attribute with a 6% trailing dividend yield.However, investors should note that DBS pays out a quarterly dividend compared to half-yearly for the other two banks.At the current rate of S$0.54 per share, the annualised dividend for DBS is S$2.16, which gives the bank a forward dividend yield of 6.4%.Winner: DBSValuationSource: DBS, UOB and OCBC Earnings ReportsFinally, we look at each bank’s valuation to determine which offers the most value.UOB has the lowest valuation of the three banks with OCBC coming in at a close second, based on each bank’s latest price-to-book ratio.DBS is the most expensive of the trio with a price-to-book ratio of more than 1.5 times.Winner: UOBGet Smart: OCBC wins hands downOCBC wins by ticking off most of the attributes listed here.Not only did the lender chalk up the best year-on-year profit increase, but it also boasted the highest NIM and the lowest CIR.Investors can also enjoy a 6% trailing dividend yield if they purchase shares of OCBC and its valuation remains undemanding at just 1.16 times price-to-book.However, income investors who prefer to receive quarterly dividends should look favourably on DBS as it is the only bank out of the three to pay dividends every three months.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":337497791033712,"gmtCreate":1723435382895,"gmtModify":1723440849384,"author":{"id":"4092839186684260","authorId":"4092839186684260","name":"Gvy","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":2,"crmLevelSwitch":0,"authorIdStr":"4092839186684260","idStr":"4092839186684260"},"htmlText":"Good article comparing the important features From all 3 banks.","listText":"Good article comparing the important features From all 3 banks.","text":"Good article comparing the important features From all 3 banks.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/337497791033712","repostId":2458708614,"repostType":4,"repost":{"id":"2458708614","pubTimestamp":1723427090,"share":"https://ttm.financial/m/news/2458708614?lang=&edition=fundamental","pubTime":"2024-08-12 09:44","market":"sg","language":"en","title":"DBS, UOB or OCBC: Which Singapore Bank Should You Pick for Your Investment Portfolio?","url":"https://stock-news.laohu8.com/highlight/detail?id=2458708614","media":"The Smart Investor","summary":"We compare the three banks after they released their latest earnings to see which makes the best pick for your portfolio.","content":"<html><head></head><body><p>The local banks are in the spotlight as the US Central Bank hinted that it may proceed with an interest rate cut this September.</p><p style=\"text-align: start;\">This earnings season has seen  <a href=\"https://laohu8.com/S/D05.SI\">DBS Group Holdings</a>,  <a href=\"https://laohu8.com/S/U11.SI\">UOB</a>, and  <a href=\"https://laohu8.com/S/O39.SI\">ocbc bank</a>  releasing strong sets of earnings as high interest rates buoy their net interest income.</p><p style=\"text-align: start;\">Investors may be wondering which of these blue-chip banks stand the best chance of doing well should interest rates fall.</p><p style=\"text-align: start;\">Let’s go through several attributes to compare the trio and arrive at a conclusion as to which makes the most compelling choice for your portfolio.</p><h2 id=\"id_4103716321\">Financial performance</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/40e2d7fe3f869ea67d1c0044d7bd12dc\" tg-width=\"807\" tg-height=\"276\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>With all three banks having reported their second quarter of 2024 (2Q 2024) earnings, we compare how each bank did for total income, profit before allowances, and net profit.</p><p>It was a mixed result as DBS logged the best year-on-year increase in total income with an 8.7% rise.</p><p>OCBC came in second with a 5% year-on-year increase in total income to S$3.6 billion for the quarter.</p><p>Looking at the profit before allowances, both DBS and OCBC were neck and neck with a 6%+ year-on-year increase.</p><p>OCBC came out tops when it came to net profit as the lender saw a 43% year-on-year decline in allowances.</p><p>DBS, on the other hand, recorded a general provision of S$51 million for 2Q 2024 compared to a write-back of provisions of S$42 million in the prior year.</p><p>As a result, OCBC chalked up an impressive 13.7% year-on-year increase in net profit to S$1.9 billion.</p><p><strong>Winner: OCBC</strong></p><h2 id=\"id_4202182282\">Net interest margins and loan growth</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/c196ac923bda98864566d780295aa24b\" tg-width=\"807\" tg-height=\"306\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>Next, we move on to each bank’s net interest margin (NIM) and scrutinise the loan book.</p><p>UOB tops the list with a year-on-year increase of 2.7% for its loan book.</p><p>However, UOB has the lowest NIM of the three banks at 2.05% for 2Q 2024.</p><p>OCBC is the winner when it comes to NIM as it boasts the highest NIM for not just 2Q 2024, but also 2Q 2023 and the previous quarter (1Q 2024).</p><p>However, investors should note that DBS saw the gentlest year-on-year decline in its NIM of just 0.02 percentage points compared with its peers.</p><p><strong>Winner: OCBC</strong></p><h2 id=\"id_3124834152\">Cost-to-income ratio (CIR)</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/91624408a39361d494bbe96cd980d681\" tg-width=\"807\" tg-height=\"218\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>The next attribute we are comparing is each bank’s cost-to-income ratio or CIR.</p><p>A lower CIR implies that the bank is more efficient at running its business as its expenses are a lower proportion of its total income.</p><p>Again, OCBC is the winner with a CIR of just 37.8% for 2Q 2024. OCBC continued to maintain a low CIR quarter-on-quarter with CIR rising by just 0.07 percentage points.</p><p>Although DBS had a fairly low CIR in 1Q 2024, Singapore’s largest bank saw its CIR jump by 2.2 percentage points to 39.6% in the current quarter.</p><h3 id=\"id_3029462504\">Winner: OCBC</h3><p><strong>Non-performing loans (NPL) ratio</strong></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ef5ed99dec5eb74e529adcafdae46f9d\" tg-width=\"808\" tg-height=\"218\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>We move on to the non-performing loans (NPL) ratio next.</p><p>OCBC has not only the lowest NPL ratio of the three banks at 0.9% but also saw a year-on-year improvement of 0.2 percentage points, making it the clear winner.</p><p><strong>Winner: OCBC</strong></p><h2 id=\"id_602062426\">Dividend yield</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/4cbe18089e5758225c77bb425d1a3083\" tg-width=\"807\" tg-height=\"247\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>This next attribute, dividend yield, should be a favourite with income investors.</p><p>With all three banks declaring a dividend for the first half of 2024, we compared each lender’s trailing 12-month dividend yield.</p><p>Both DBS and OCBC are tied for this attribute with a 6% trailing dividend yield.</p><p>However, investors should note that DBS pays out a quarterly dividend compared to half-yearly for the other two banks.</p><p>At the current rate of S$0.54 per share, the annualised dividend for DBS is S$2.16, which gives the bank a forward dividend yield of 6.4%.</p><p><strong>Winner: DBS</strong></p><h2 id=\"id_3907985662\">Valuation</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a94934f7b50b7ef98bae0e2e3eb069c0\" tg-width=\"807\" tg-height=\"215\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>Finally, we look at each bank’s valuation to determine which offers the most value.</p><p>UOB has the lowest valuation of the three banks with OCBC coming in at a close second, based on each bank’s latest price-to-book ratio.</p><p>DBS is the most expensive of the trio with a price-to-book ratio of more than 1.5 times.</p><p><strong>Winner: UOB</strong></p><h2 id=\"id_3394165249\">Get Smart: OCBC wins hands down</h2><p>OCBC wins by ticking off most of the attributes listed here.</p><p>Not only did the lender chalk up the best year-on-year profit increase, but it also boasted the highest NIM and the lowest CIR.</p><p>Investors can also enjoy a 6% trailing dividend yield if they purchase shares of OCBC and its valuation remains undemanding at just 1.16 times price-to-book.</p><p>However, income investors who prefer to receive quarterly dividends should look favourably on DBS as it is the only bank out of the three to pay dividends every three months.</p><p></p><p></p></body></html>","source":"thesmartinvestor_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>DBS, UOB or OCBC: Which Singapore Bank Should You Pick for Your Investment Portfolio?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ 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0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDBS, UOB or OCBC: Which Singapore Bank Should You Pick for Your Investment Portfolio?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-12 09:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/dbs-uob-or-ocbc-which-singapore-bank-should-you-pick-for-your-investment-portfolio/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The local banks are in the spotlight as the US Central Bank hinted that it may proceed with an interest rate cut this September.This earnings season has seen  DBS Group Holdings,  UOB, and  ocbc bank ...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/dbs-uob-or-ocbc-which-singapore-bank-should-you-pick-for-your-investment-portfolio/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0672654166.SGD":"FTIF - Templeton Asian Growth A (acc) SGD-H1","SG9999006266.SGD":"MANULIFE SINGAPORE EQUITY \"A\" (SGD) ACC","LU0011963245.USD":"abrdn SICAV I ASIA PACIFIC SUSTAINAB  LE EQUITY \"A\" (USD) ACC","LU0543330483.HKD":"TEMPLETON ASIAN GROWTH \"A\" (HKD) ACC","IE00B97KM107.HKD":"FSSA ASIAN EQUITY PLUS \"I\" (HKD) ACC","LU0557290698.USD":"施罗德环球可持续增长基金","LU0061477393.USD":"CT (LUX) I ASIA EQUITY INCOME \"AU\" (USD) ACC","LU0516423091.SGD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (SGD) ACC","SG9999014302.SGD":"RHB Singapore Income Fund SGD","LU0823397103.USD":"BNP PARIBAS SUSTAINABLE ASIA EX-JAPAN EQUITY \"C\" (USD) ACC","LU2257852520.SGD":"JPMorgan Funds - Asia Growth A (acc) SGD","SG9999000475.SGD":"Aberdeen Standard Singapore Equity SGD","LU0823417653.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) ACC","LU1105468828.SGD":"Allianz Total Return Asian Equity AM DIS H2-SGD","O39.SI":"华侨银行","LU1282649067.USD":"ALLIANZ ASIAN MULTI INCOME PLUS \"AMG\" (USD) INC A","LU1981816686.USD":"EASTSPRING INV ASIAN MULTI FACTOR EQUITY \"A\" (USD) ACC","U11.SI":"大华银行","SG9999002414.USD":"LIONGLOBAL SINGAPORE TRUST (USD) ACC","SG9999000459.SGD":"Aberdeen Standard Pacific Equity SGD","SGXZ24219693.SGD":"UNITED SG DYNAMIC INCOME FUND \"A\" (SGD) INC","LU0261945553.USD":"FIDELITY ASEAN \"A\" ACC","LU0821914370.USD":"贝莱德亚洲成长领袖A2","LU0532188223.SGD":"JPMorgan Funds - ASEAN Equity A (acc) SGD","LU0831103253.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD","LU0188438112.USD":"SCHRODER ISF ASIAN EQUITY YIELD \"A\" ACC","IE00B067MR52.USD":"FSSA ASIAN EQUITY PLUS \"I\" (USD) ACC","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","SG9999016042.SGD":"Schroder Singapore Trust A Acc SGD","SGXZ27511609.SGD":"NIKKO AM SINGAPORE DIVIDEND EQUITY \"SGD\" (SGD) ACC","IE0031814969.USD":"FSSA ASEAN ALL CAP FUND \"I\" (USD) ACC","D05.SI":"星展集团控股","LU0572939691.SGD":"Janus Henderson Horizon Asian Dividend Income A2 SGD","LU0577902371.SGD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (SGD) ACC","LU0831093199.SGD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AM3\" (SGDHDG) INC","LU0261947096.USD":"FIDELITY FUNDS  SUSTAINABLE ASIA EQUITY \"A\" (USD) ACC","LU0516422440.USD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"A\" (USD) ACC","LU0516422366.SGD":"Fullerton Lux Funds - Asia Focus Equities A Acc SGD","IE0032834883.USD":"FSSA ASIAN EQUITY PLUS \"I\" (USD) INC","LU0898667661.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD-H","SG9999000327.SGD":"Schroder Asian Growth A Dis SGD","SG9999013478.USD":"利安新加坡股息基金","LU0192582467.USD":"SCHRODER ISF ASIAN EQUITY YIELD \"A\" (USD) INC MF","LU0205439572.USD":"富达亚太股息基金","SG9999013460.SGD":"LionGlobal Singapore Dividend Equity Fund SGD","SG9999001903.USD":"Aberdeen Standard Pacific Equity USD","SG9999000343.SGD":"Schroder Singapore Trust A Dis SGD"},"source_url":"https://thesmartinvestor.com.sg/dbs-uob-or-ocbc-which-singapore-bank-should-you-pick-for-your-investment-portfolio/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2458708614","content_text":"The local banks are in the spotlight as the US Central Bank hinted that it may proceed with an interest rate cut this September.This earnings season has seen  DBS Group Holdings,  UOB, and  ocbc bank  releasing strong sets of earnings as high interest rates buoy their net interest income.Investors may be wondering which of these blue-chip banks stand the best chance of doing well should interest rates fall.Let’s go through several attributes to compare the trio and arrive at a conclusion as to which makes the most compelling choice for your portfolio.Financial performanceSource: DBS, UOB and OCBC Earnings ReportsWith all three banks having reported their second quarter of 2024 (2Q 2024) earnings, we compare how each bank did for total income, profit before allowances, and net profit.It was a mixed result as DBS logged the best year-on-year increase in total income with an 8.7% rise.OCBC came in second with a 5% year-on-year increase in total income to S$3.6 billion for the quarter.Looking at the profit before allowances, both DBS and OCBC were neck and neck with a 6%+ year-on-year increase.OCBC came out tops when it came to net profit as the lender saw a 43% year-on-year decline in allowances.DBS, on the other hand, recorded a general provision of S$51 million for 2Q 2024 compared to a write-back of provisions of S$42 million in the prior year.As a result, OCBC chalked up an impressive 13.7% year-on-year increase in net profit to S$1.9 billion.Winner: OCBCNet interest margins and loan growthSource: DBS, UOB and OCBC Earnings ReportsNext, we move on to each bank’s net interest margin (NIM) and scrutinise the loan book.UOB tops the list with a year-on-year increase of 2.7% for its loan book.However, UOB has the lowest NIM of the three banks at 2.05% for 2Q 2024.OCBC is the winner when it comes to NIM as it boasts the highest NIM for not just 2Q 2024, but also 2Q 2023 and the previous quarter (1Q 2024).However, investors should note that DBS saw the gentlest year-on-year decline in its NIM of just 0.02 percentage points compared with its peers.Winner: OCBCCost-to-income ratio (CIR)Source: DBS, UOB and OCBC Earnings ReportsThe next attribute we are comparing is each bank’s cost-to-income ratio or CIR.A lower CIR implies that the bank is more efficient at running its business as its expenses are a lower proportion of its total income.Again, OCBC is the winner with a CIR of just 37.8% for 2Q 2024. OCBC continued to maintain a low CIR quarter-on-quarter with CIR rising by just 0.07 percentage points.Although DBS had a fairly low CIR in 1Q 2024, Singapore’s largest bank saw its CIR jump by 2.2 percentage points to 39.6% in the current quarter.Winner: OCBCNon-performing loans (NPL) ratioSource: DBS, UOB and OCBC Earnings ReportsWe move on to the non-performing loans (NPL) ratio next.OCBC has not only the lowest NPL ratio of the three banks at 0.9% but also saw a year-on-year improvement of 0.2 percentage points, making it the clear winner.Winner: OCBCDividend yieldSource: DBS, UOB and OCBC Earnings ReportsThis next attribute, dividend yield, should be a favourite with income investors.With all three banks declaring a dividend for the first half of 2024, we compared each lender’s trailing 12-month dividend yield.Both DBS and OCBC are tied for this attribute with a 6% trailing dividend yield.However, investors should note that DBS pays out a quarterly dividend compared to half-yearly for the other two banks.At the current rate of S$0.54 per share, the annualised dividend for DBS is S$2.16, which gives the bank a forward dividend yield of 6.4%.Winner: DBSValuationSource: DBS, UOB and OCBC Earnings ReportsFinally, we look at each bank’s valuation to determine which offers the most value.UOB has the lowest valuation of the three banks with OCBC coming in at a close second, based on each bank’s latest price-to-book ratio.DBS is the most expensive of the trio with a price-to-book ratio of more than 1.5 times.Winner: UOBGet Smart: OCBC wins hands downOCBC wins by ticking off most of the attributes listed here.Not only did the lender chalk up the best year-on-year profit increase, but it also boasted the highest NIM and the lowest CIR.Investors can also enjoy a 6% trailing dividend yield if they purchase shares of OCBC and its valuation remains undemanding at just 1.16 times price-to-book.However, income investors who prefer to receive quarterly dividends should look favourably on DBS as it is the only bank out of the three to pay dividends every three months.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"},{"id":337489005875312,"gmtCreate":1723430864586,"gmtModify":1723430868774,"author":{"id":"3561688895444322","authorId":"3561688895444322","name":"Cosmograph","avatar":"https://community-static.tradeup.com/news/5da27652e118329a7cb4c9cea910b77a","vip":1,"crmLevel":6,"crmLevelSwitch":0,"authorIdStr":"3561688895444322","idStr":"3561688895444322"},"htmlText":"If only it were that simple.... But thanks for sharing..","listText":"If only it were that simple.... But thanks for sharing..","text":"If only it were that simple.... But thanks for sharing..","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/337489005875312","repostId":2458708614,"repostType":4,"repost":{"id":"2458708614","pubTimestamp":1723427090,"share":"https://ttm.financial/m/news/2458708614?lang=&edition=fundamental","pubTime":"2024-08-12 09:44","market":"sg","language":"en","title":"DBS, UOB or OCBC: Which Singapore Bank Should You Pick for Your Investment Portfolio?","url":"https://stock-news.laohu8.com/highlight/detail?id=2458708614","media":"The Smart Investor","summary":"We compare the three banks after they released their latest earnings to see which makes the best pick for your portfolio.","content":"<html><head></head><body><p>The local banks are in the spotlight as the US Central Bank hinted that it may proceed with an interest rate cut this September.</p><p style=\"text-align: start;\">This earnings season has seen  <a href=\"https://laohu8.com/S/D05.SI\">DBS Group Holdings</a>,  <a href=\"https://laohu8.com/S/U11.SI\">UOB</a>, and  <a href=\"https://laohu8.com/S/O39.SI\">ocbc bank</a>  releasing strong sets of earnings as high interest rates buoy their net interest income.</p><p style=\"text-align: start;\">Investors may be wondering which of these blue-chip banks stand the best chance of doing well should interest rates fall.</p><p style=\"text-align: start;\">Let’s go through several attributes to compare the trio and arrive at a conclusion as to which makes the most compelling choice for your portfolio.</p><h2 id=\"id_4103716321\">Financial performance</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/40e2d7fe3f869ea67d1c0044d7bd12dc\" tg-width=\"807\" tg-height=\"276\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>With all three banks having reported their second quarter of 2024 (2Q 2024) earnings, we compare how each bank did for total income, profit before allowances, and net profit.</p><p>It was a mixed result as DBS logged the best year-on-year increase in total income with an 8.7% rise.</p><p>OCBC came in second with a 5% year-on-year increase in total income to S$3.6 billion for the quarter.</p><p>Looking at the profit before allowances, both DBS and OCBC were neck and neck with a 6%+ year-on-year increase.</p><p>OCBC came out tops when it came to net profit as the lender saw a 43% year-on-year decline in allowances.</p><p>DBS, on the other hand, recorded a general provision of S$51 million for 2Q 2024 compared to a write-back of provisions of S$42 million in the prior year.</p><p>As a result, OCBC chalked up an impressive 13.7% year-on-year increase in net profit to S$1.9 billion.</p><p><strong>Winner: OCBC</strong></p><h2 id=\"id_4202182282\">Net interest margins and loan growth</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/c196ac923bda98864566d780295aa24b\" tg-width=\"807\" tg-height=\"306\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>Next, we move on to each bank’s net interest margin (NIM) and scrutinise the loan book.</p><p>UOB tops the list with a year-on-year increase of 2.7% for its loan book.</p><p>However, UOB has the lowest NIM of the three banks at 2.05% for 2Q 2024.</p><p>OCBC is the winner when it comes to NIM as it boasts the highest NIM for not just 2Q 2024, but also 2Q 2023 and the previous quarter (1Q 2024).</p><p>However, investors should note that DBS saw the gentlest year-on-year decline in its NIM of just 0.02 percentage points compared with its peers.</p><p><strong>Winner: OCBC</strong></p><h2 id=\"id_3124834152\">Cost-to-income ratio (CIR)</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/91624408a39361d494bbe96cd980d681\" tg-width=\"807\" tg-height=\"218\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>The next attribute we are comparing is each bank’s cost-to-income ratio or CIR.</p><p>A lower CIR implies that the bank is more efficient at running its business as its expenses are a lower proportion of its total income.</p><p>Again, OCBC is the winner with a CIR of just 37.8% for 2Q 2024. OCBC continued to maintain a low CIR quarter-on-quarter with CIR rising by just 0.07 percentage points.</p><p>Although DBS had a fairly low CIR in 1Q 2024, Singapore’s largest bank saw its CIR jump by 2.2 percentage points to 39.6% in the current quarter.</p><h3 id=\"id_3029462504\">Winner: OCBC</h3><p><strong>Non-performing loans (NPL) ratio</strong></p><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/ef5ed99dec5eb74e529adcafdae46f9d\" tg-width=\"808\" tg-height=\"218\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>We move on to the non-performing loans (NPL) ratio next.</p><p>OCBC has not only the lowest NPL ratio of the three banks at 0.9% but also saw a year-on-year improvement of 0.2 percentage points, making it the clear winner.</p><p><strong>Winner: OCBC</strong></p><h2 id=\"id_602062426\">Dividend yield</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/4cbe18089e5758225c77bb425d1a3083\" tg-width=\"807\" tg-height=\"247\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>This next attribute, dividend yield, should be a favourite with income investors.</p><p>With all three banks declaring a dividend for the first half of 2024, we compared each lender’s trailing 12-month dividend yield.</p><p>Both DBS and OCBC are tied for this attribute with a 6% trailing dividend yield.</p><p>However, investors should note that DBS pays out a quarterly dividend compared to half-yearly for the other two banks.</p><p>At the current rate of S$0.54 per share, the annualised dividend for DBS is S$2.16, which gives the bank a forward dividend yield of 6.4%.</p><p><strong>Winner: DBS</strong></p><h2 id=\"id_3907985662\">Valuation</h2><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/a94934f7b50b7ef98bae0e2e3eb069c0\" tg-width=\"807\" tg-height=\"215\"/></p><p>Source: DBS, UOB and OCBC Earnings Reports</p><p>Finally, we look at each bank’s valuation to determine which offers the most value.</p><p>UOB has the lowest valuation of the three banks with OCBC coming in at a close second, based on each bank’s latest price-to-book ratio.</p><p>DBS is the most expensive of the trio with a price-to-book ratio of more than 1.5 times.</p><p><strong>Winner: UOB</strong></p><h2 id=\"id_3394165249\">Get Smart: OCBC wins hands down</h2><p>OCBC wins by ticking off most of the attributes listed here.</p><p>Not only did the lender chalk up the best year-on-year profit increase, but it also boasted the highest NIM and the lowest CIR.</p><p>Investors can also enjoy a 6% trailing dividend yield if they purchase shares of OCBC and its valuation remains undemanding at just 1.16 times price-to-book.</p><p>However, income investors who prefer to receive quarterly dividends should look favourably on DBS as it is the only bank out of the three to pay dividends every three months.</p><p></p><p></p></body></html>","source":"thesmartinvestor_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>DBS, UOB or OCBC: Which Singapore Bank Should You Pick for Your Investment Portfolio?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ 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0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nDBS, UOB or OCBC: Which Singapore Bank Should You Pick for Your Investment Portfolio?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-12 09:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://thesmartinvestor.com.sg/dbs-uob-or-ocbc-which-singapore-bank-should-you-pick-for-your-investment-portfolio/><strong>The Smart Investor</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The local banks are in the spotlight as the US Central Bank hinted that it may proceed with an interest rate cut this September.This earnings season has seen  DBS Group Holdings,  UOB, and  ocbc bank ...</p>\n\n<a href=\"https://thesmartinvestor.com.sg/dbs-uob-or-ocbc-which-singapore-bank-should-you-pick-for-your-investment-portfolio/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU0672654166.SGD":"FTIF - Templeton Asian Growth A (acc) SGD-H1","SG9999006266.SGD":"MANULIFE SINGAPORE EQUITY \"A\" (SGD) ACC","LU0011963245.USD":"abrdn SICAV I ASIA PACIFIC SUSTAINAB  LE EQUITY \"A\" (USD) ACC","LU0543330483.HKD":"TEMPLETON ASIAN GROWTH \"A\" (HKD) ACC","IE00B97KM107.HKD":"FSSA ASIAN EQUITY PLUS \"I\" (HKD) ACC","LU0557290698.USD":"施罗德环球可持续增长基金","LU0061477393.USD":"CT (LUX) I ASIA EQUITY INCOME \"AU\" (USD) ACC","LU0516423091.SGD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"I\" (SGD) ACC","SG9999014302.SGD":"RHB Singapore Income Fund SGD","LU0823397103.USD":"BNP PARIBAS SUSTAINABLE ASIA EX-JAPAN EQUITY \"C\" (USD) ACC","LU2257852520.SGD":"JPMorgan Funds - Asia Growth A (acc) SGD","SG9999000475.SGD":"Aberdeen Standard Singapore Equity SGD","LU0823417653.USD":"BNP PARIBAS SUSTAINABLE GLOBAL LOW VOL EQUITY \"C\" (USD) ACC","LU1105468828.SGD":"Allianz Total Return Asian Equity AM DIS H2-SGD","O39.SI":"华侨银行","LU1282649067.USD":"ALLIANZ ASIAN MULTI INCOME PLUS \"AMG\" (USD) INC A","LU1981816686.USD":"EASTSPRING INV ASIAN MULTI FACTOR EQUITY \"A\" (USD) ACC","U11.SI":"大华银行","SG9999002414.USD":"LIONGLOBAL SINGAPORE TRUST (USD) ACC","SG9999000459.SGD":"Aberdeen Standard Pacific Equity SGD","SGXZ24219693.SGD":"UNITED SG DYNAMIC INCOME FUND \"A\" (SGD) INC","LU0261945553.USD":"FIDELITY ASEAN \"A\" ACC","LU0821914370.USD":"贝莱德亚洲成长领袖A2","LU0532188223.SGD":"JPMorgan Funds - ASEAN Equity A (acc) SGD","LU0831103253.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD","LU0188438112.USD":"SCHRODER ISF ASIAN EQUITY YIELD \"A\" ACC","IE00B067MR52.USD":"FSSA ASIAN EQUITY PLUS \"I\" (USD) ACC","LU1064131342.USD":"Fullerton Lux Funds - Global Absolute Alpha A Acc USD","SG9999016042.SGD":"Schroder Singapore Trust A Acc SGD","SGXZ27511609.SGD":"NIKKO AM SINGAPORE DIVIDEND EQUITY \"SGD\" (SGD) ACC","IE0031814969.USD":"FSSA ASEAN ALL CAP FUND \"I\" (USD) ACC","D05.SI":"星展集团控股","LU0572939691.SGD":"Janus Henderson Horizon Asian Dividend Income A2 SGD","LU0577902371.SGD":"FULLERTON LUX FUNDS - ASIA GROWTH & INCOME EQUITIE \"I\" (SGD) ACC","LU0831093199.SGD":"HSBC GIF MANAGED SOLUTIONS ASIA FOCUSED INCOME \"AM3\" (SGDHDG) INC","LU0261947096.USD":"FIDELITY FUNDS  SUSTAINABLE ASIA EQUITY \"A\" (USD) ACC","LU0516422440.USD":"FULLERTON LUX FUNDS - ASIA FOCUS EQUITIES \"A\" (USD) ACC","LU0516422366.SGD":"Fullerton Lux Funds - Asia Focus Equities A Acc SGD","IE0032834883.USD":"FSSA ASIAN EQUITY PLUS \"I\" (USD) INC","LU0898667661.SGD":"JPMorgan Funds - Asia Pacific Income A (mth) SGD-H","SG9999000327.SGD":"Schroder Asian Growth A Dis SGD","SG9999013478.USD":"利安新加坡股息基金","LU0192582467.USD":"SCHRODER ISF ASIAN EQUITY YIELD \"A\" (USD) INC MF","LU0205439572.USD":"富达亚太股息基金","SG9999013460.SGD":"LionGlobal Singapore Dividend Equity Fund SGD","SG9999001903.USD":"Aberdeen Standard Pacific Equity USD","SG9999000343.SGD":"Schroder Singapore Trust A Dis SGD"},"source_url":"https://thesmartinvestor.com.sg/dbs-uob-or-ocbc-which-singapore-bank-should-you-pick-for-your-investment-portfolio/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2458708614","content_text":"The local banks are in the spotlight as the US Central Bank hinted that it may proceed with an interest rate cut this September.This earnings season has seen  DBS Group Holdings,  UOB, and  ocbc bank  releasing strong sets of earnings as high interest rates buoy their net interest income.Investors may be wondering which of these blue-chip banks stand the best chance of doing well should interest rates fall.Let’s go through several attributes to compare the trio and arrive at a conclusion as to which makes the most compelling choice for your portfolio.Financial performanceSource: DBS, UOB and OCBC Earnings ReportsWith all three banks having reported their second quarter of 2024 (2Q 2024) earnings, we compare how each bank did for total income, profit before allowances, and net profit.It was a mixed result as DBS logged the best year-on-year increase in total income with an 8.7% rise.OCBC came in second with a 5% year-on-year increase in total income to S$3.6 billion for the quarter.Looking at the profit before allowances, both DBS and OCBC were neck and neck with a 6%+ year-on-year increase.OCBC came out tops when it came to net profit as the lender saw a 43% year-on-year decline in allowances.DBS, on the other hand, recorded a general provision of S$51 million for 2Q 2024 compared to a write-back of provisions of S$42 million in the prior year.As a result, OCBC chalked up an impressive 13.7% year-on-year increase in net profit to S$1.9 billion.Winner: OCBCNet interest margins and loan growthSource: DBS, UOB and OCBC Earnings ReportsNext, we move on to each bank’s net interest margin (NIM) and scrutinise the loan book.UOB tops the list with a year-on-year increase of 2.7% for its loan book.However, UOB has the lowest NIM of the three banks at 2.05% for 2Q 2024.OCBC is the winner when it comes to NIM as it boasts the highest NIM for not just 2Q 2024, but also 2Q 2023 and the previous quarter (1Q 2024).However, investors should note that DBS saw the gentlest year-on-year decline in its NIM of just 0.02 percentage points compared with its peers.Winner: OCBCCost-to-income ratio (CIR)Source: DBS, UOB and OCBC Earnings ReportsThe next attribute we are comparing is each bank’s cost-to-income ratio or CIR.A lower CIR implies that the bank is more efficient at running its business as its expenses are a lower proportion of its total income.Again, OCBC is the winner with a CIR of just 37.8% for 2Q 2024. OCBC continued to maintain a low CIR quarter-on-quarter with CIR rising by just 0.07 percentage points.Although DBS had a fairly low CIR in 1Q 2024, Singapore’s largest bank saw its CIR jump by 2.2 percentage points to 39.6% in the current quarter.Winner: OCBCNon-performing loans (NPL) ratioSource: DBS, UOB and OCBC Earnings ReportsWe move on to the non-performing loans (NPL) ratio next.OCBC has not only the lowest NPL ratio of the three banks at 0.9% but also saw a year-on-year improvement of 0.2 percentage points, making it the clear winner.Winner: OCBCDividend yieldSource: DBS, UOB and OCBC Earnings ReportsThis next attribute, dividend yield, should be a favourite with income investors.With all three banks declaring a dividend for the first half of 2024, we compared each lender’s trailing 12-month dividend yield.Both DBS and OCBC are tied for this attribute with a 6% trailing dividend yield.However, investors should note that DBS pays out a quarterly dividend compared to half-yearly for the other two banks.At the current rate of S$0.54 per share, the annualised dividend for DBS is S$2.16, which gives the bank a forward dividend yield of 6.4%.Winner: DBSValuationSource: DBS, UOB and OCBC Earnings ReportsFinally, we look at each bank’s valuation to determine which offers the most value.UOB has the lowest valuation of the three banks with OCBC coming in at a close second, based on each bank’s latest price-to-book ratio.DBS is the most expensive of the trio with a price-to-book ratio of more than 1.5 times.Winner: UOBGet Smart: OCBC wins hands downOCBC wins by ticking off most of the attributes listed here.Not only did the lender chalk up the best year-on-year profit increase, but it also boasted the highest NIM and the lowest CIR.Investors can also enjoy a 6% trailing dividend yield if they purchase shares of OCBC and its valuation remains undemanding at just 1.16 times price-to-book.However, income investors who prefer to receive quarterly dividends should look favourably on DBS as it is the only bank out of the three to pay dividends every three months.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"EN"}],"isCommentEnd":false,"newsSizeData":{"likeSize":14,"commentSize":4,"repostSize":2,"favoriteSize":6,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2458708614"}