Bank P/B Dividend yield ROE Comparison with DBS
DBS (D05.SI)
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2.96x 4.27% 16.17% —
UOB (U11.SI)
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1.38x 3.84% 9.22% DBS trades at a 114.5% P/B premium ; DBS yield is 0.43 percentage points higher
OCBC Bank (O39.SI)
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2.05x 3.04% 12.74% DBS trades at a 44.4% P/B premium ; DBS yield is 1.23 percentage points higher
Read-through: DBS’s premium is substantial, particularly versus UOB, so it is not the apparent value choice on book value. The market appears to be paying for materially better profitability: DBS’s ROE exceeds OCBC’s by 3.43 percentage points and UOB’s by 6.95 percentage points . Importantly, DBS also combines that premium valuation with the highest current indicated yield, which makes the relative valuation less demanding than a premium P/B alone suggests.
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