DBS Breaks $55 While UOB Slides: Would 2026 Be Harsh For SG Banks?

Tiger_SG
2025-11-06
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Singapore’s two largest banks released their earnings today. $DBS(D05.SI)$ hit a record high, while $UOB(U11.SI)$ plunged 3%. Let’s take a look at the key highlights from their reports.

  • DBS: Delivered strong results despite softer margins; record income and higher dividend show balance-sheet resilience. 2026 guidance implies only a slight dip in earnings, cushioned by wealth-management momentum.

  • UOB: Hit hard by heavy provisioning; 2026 margins likely to fall further. Management prioritizes prudence and coverage, but profit recovery depends on credit-cycle stability.

DBS breaks $55 with record income!

Q3 results were resilient and beat estimates. NIM narrowed but diversified income offset pressure. Lower commercial-book NII due to rate decline, partly offset by strong non-interest income growth. Total Income hit a record high, driven by strong wealth management and deposit growth

  • Net Profit: S$2.95 b (-2% YoY) vs estimate S$2.72 b (beat 8.46%)

  • Net Interest Margin (NIM): 1.96% (down from 2.11%)

  • Dividend: 75 Singapore cents per share (60 c ordinary + 15 c capital return) vs 54 c a year ago

2026 outlook

  • Net Profit expected to dip slightly from 2025. Total Income expected to stay around 2025 levels despite rate headwinds

  • Commercial-book non-interestn income would be high-single-digit growth while wealth-management Income would be mid-teens growth

UOB: Margins weakening further into 2026

Sharp profit slump driven by heavy credit-loss provisions. S$1.36 b total allowances (including S$615 m in pre-emptive general provisions).

CEO said "We proactively set aside general allowances to strengthen provision coverage, supported by a strong capital base.” Dividend plan remains unchanged.

  • Net Profit: S$443 m (-72% YoY) vs estimate S$1.35 b.

  • Net Interest Margin (NIM): 1.82% (down from 2.05%)

2026 Outlook:

  • NIM: Expected at 1.75–1.80% (below 2025’s 1.85–1.90%)

  • Loan Growth: Low single digits; Fee Income: High-single- to double-digit growth

  • Profitability under pressure from narrowing spreads and elevated provisions

  1. Will $OCBC Bank(O39.SI)$ follow which company's trend?

  2. Take profit of DBS as it hits a record high? Or buy the dip of UOB?

  3. Would banks suffer in 2026?

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Comments

  • Shyon
    2025-11-07
    Shyon
    $DBS Group Holdings(D05.SI)$ delivered record income and a higher dividend despite softer margins, supported by strong wealth management and deposit growth. The 2026 outlook signals only a slight earnings dip, showing its balance-sheet strength. With the stock breaking above $55, DBS continues to stand out among local banks.

    In contrast, $UOB(U11.SI)$ profits slumped due to heavy provisions and weaker margins. Management’s prudence in building reserves is wise, but the steep profit drop and cautious guidance highlight ongoing challenges. Investors are rightly pricing in near-term headwinds for UOB.

    For $ocbc bank(O39.SI)$ , I expect results between DBS and UOB — steady but moderate. I’d trim DBS to lock in profits after its strong run and wait for more clarity before buying UOB’s dip. With rate cuts likely in 2026, banks may face further NIM pressure, though fee and wealth income could cushion the impact.

    @Tiger_SG @Tiger_comments @TigerStars

  • koolgal
    2025-11-09
    koolgal
    🌟🌟🌟Would Singapore banks suffer in 2026?  It would seem so as a series of interest rate cuts in 2026 is expected to exert downward pressure on the Net Interest Margin.

    However our 3 local Singapore banks are already preparing for this shift & possess alternate revenue sources to mitigate the impact.

    Our Singapore banks $DBS(D05.SI)$ $OCBC Bank(O39.SI)$ and $UOB(U11.SI)$ are focusing on the lucrative Wealth Management and Private Banking sector.   The banks can generate significant fees from managing assets of high net worth individuals and retail customers through investment products, advisory services and portfolio management.

    Moreover fees from managing investment funds and other asset management services provide a steady, non interest based income stream.

    Lower interest rates may also translate to an increase in bank loans as lower interest rates reduce the cost of borrowing for customers.

    @Tiger_SG @TigerStars @Tiger_comments @TigerClub @CaptainTiger

  • Success88
    2025-11-10
    Success88
    Yes DBS able to break $55 I believe OCBC also can break $18 😆 $OCBC Bank(O39.SI)$ is the lowest bank stock among the 3 major bank in Singapore. OCBC recent earning also incredible profits. Invest in OCBC also a good choice
  • Mkoh
    2025-11-07
    Mkoh
    在财富管理流入和存款的推动下，星展银行股价创下55.54新元的历史新高，上涨3.8%，净利润同比仅下降2%至29.5亿新元，超出预期。大华银行股价下跌2.78%，至33.25新元，此前利润下降72%，至4.43亿新元，原因是美国和中国(CRE)风险拨备6.15亿新元。华侨银行保持坚挺，在保险和费用的帮助下，第三季度利润稳定在19.8亿新元。这些转变抓住了2025年的峰值利率收益，但2026年美联储、欧洲央行和MAS的降息威胁(NIM)挤压。尽管如此，这三家银行的业绩记录仍令人印象深刻：在4-5%的股息收益率推动下，星展银行2020-2025年的总回报率为+166%，华侨银行为+96%，大华银行为+82%。2026年不会很糟糕——利润可能会下降3-8%——但非利息收入和股息提供了缓冲，其中星展银行的表现最为强劲。
    2026年考验的是适应而不是扩张：利率正常化限制了上行空间，但稳健的资产负债表和收入多样性确保不会溃败。DBS提供相对安全性；混合持股以实现收益和增长。
  • Aqa
    2025-11-06
    Aqa
    Buy the dip for long term on $UOB(U11.SI)$. The management already anticipates double digit fee income growth while maintaining cost discipline with low single digit operating expense growth. It is confirmed that the elevated Q3 provisions were strategic in nature rather than a response to any deteriorating asset quality. The management’s decision to build a substantial provision buffer while explicitly protecting the 2025 final dividend suggests they’re prioritizing long term shareholder returns over short term reported earnings. For income investors with a long term perspective, this conservative approach may prove more valuable than maximizing quarterly profits. 2026 may be getting unpredictable, but UoB will be sure to continue thriving. Thanks @Tiger_SG @TigerStars @Tiger_comments
  • koolgal
    2025-11-09
    koolgal
    🌟🌟🌟Much as it is very tempting to take profit on $DBS(D05.SI)$ I prefer to hold on to it in order to allow the magic of compounding to happen.

    That is how my DBS shares are up 136% just simply by buying and holding long term.  Moreover I am also rewarded by DBS's attractive dividends paid every 3 months.

    Go Long Go Strong Go DBS 🚀🚀🚀🌛🌛🌛🌈🌈🌈💰💰💰

    @Tiger_SG @Tiger_comments @TigerStars @TigerClub @CaptainTiger

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