π Q2 2025 Earnings Digest β Singapore Banks
1. DBS Group Holdings
Q2 Net Profit: Rose 1% YoY, beating forecasts.
Key Highlight: Maintains full-year 2025 outlook, supported by sustained margins and asset quality.
Market Reaction: Likely positive due to earnings beat and stable guidance.
Outlook: DBS remains the strongest in terms of execution and growth clarity. A defensive core holding.
2. OCBC Bank
Q2 Net Profit: Fell 7% YoY to S$1.82 billion.
Dividend: Declared S$0.41/share, which is stable.
Key Concern: Lower insurance and trading income, though fundamentals remain solid.
Outlook: Dividend support may limit downside, but lack of earnings momentum may cap upside.
3. UOB Group
Q2 Net Profit: Dropped 6% YoY to S$1.34 billion, missing analyst forecasts.
Headwind: NIM pressure and higher costs.
Market Reaction: Likely negative in the short term due to earnings miss.
Outlook: Investors may stay cautious unless guidance improves or valuation becomes compelling.
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π Post-Earnings Trading Strategy
DBS (D05):
Action: Hold or Buy on Pullbacks
Why: Positive earnings surprise, solid 2025 outlook, and strong operational resilience.
OCBC (O39):
Action: Hold
Why: Moderate results; dividend yield supports valuation but near-term growth catalysts lacking.
UOB (U11):
Action: Wait and Watch / Possible Short-Term Sell
Why: Earnings miss could weigh on sentiment; look for better entry if price corrects further.
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