SG Bank Earnings: Which Giants Will Beat After Over 20% Gains YTD?
On Thursday and Friday, three big banks in Singapore will release earnings.
As of November 5, 2024, they have delivered strong performances year-to-date. $DBS Group Holdings(D05.SI)$ has led the pack with a 34.96% gain, followed by $ocbc bank(O39.SI)$ at 25.13%, and $UOB(U11.SI)$ at 21.70%. All three have notably outperformed the Straits Times Index (STI), which has risen by 12.91% over the same period.
1. How do three giants perform in last quarter?
In the previous quarter (Q2 2024), all three banks delivered solid results.
DBS' net interest margin (NIM) remained stable, while OCBC saw a slight decline of 7 basis points in NIM. UOB, on the other hand, recorded a 3 basis point improvement in its NIM. This was amid rising concerns about a potential slowdown in interest income as Fed signaled the beginning of its rate-cut cycle.
$DBS Group Holdings(D05.SI)$ Q2 net profit hit S$2.69 bln vs S$2.41 bln estimate. ROE hit new quarterly high of 19.2%, up from 13.4% a year ago.
$ocbc bank(O39.SI)$ net profit rose to S$1.94 billion from S$1.71 billion a year earlier, beating estimates of S$1.82 billion.
$UOB(U11.SI)$ net profit rose to S$1.43 billion, lower than the mean estimate of S$1.44 billion from estimates.
The dividend yield for DBS stands at 5.1%. OCBC’s dividend yield stands at 5.6%, while UOB stands at 5.3%.
2. A strong Q3 amid Fed rate cut impact?
Looking ahead, analysts expect all three banks to report a robust set of results for Q3 2024, largely driven by non-interest income streams.
DBS is expected to post a 6.3% increase in net profit to 2.795 billion Singapore dollars.
It’s expected UOB’s NIM to be stable, while OCBC’s NIM is likely to see a smaller decline q-o-q.
Additionally, trading and investment income are expected to remain strong, particularly for OCBC and UOB, who have seen solid performance from both customer and non-customer flows.
The Fed's decision to lower interest rates is expected to have a muted effect on the banks’ earnings in the short term. However, long-term yields are expected to remain elevated, which will help support banks' earnings and NIMs.
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🌟🌟🌟I am really thrilled that DBS $DBS Group Holdings(D05.SI)$
Even better, DBS is increasing its dividends to 54 cents per share, up from 48 cents declared in previous year quarter. DBS has also announced a new share buyback programme of SGD 3 billion.
What an amazing Bank! My strategy of Buying and Holding DBS long term has certainly paid off.
@Tiger_SG @Tiger_comments @TigerStars
$DBS Group Holdings(D05.SI)$ has led the pack with a 34.96% gain, followed by $ocbc bank(O39.SI)$ at 25.13%, and $UOB(U11.SI)$ at 21.70%.
All three have notably outperformed the Straits Times Index (STI), which has risen by 12.91% over the same period.
@Universe宇宙 @LMSunshine @koolgal @Shyon @Aqa @GoodLife99 @rL @HelenJanet @SPACE ROCKET @TigerGPT
Comment on this post and tiger coins will be sent in this topic within 7 days!
$DBS Group Holdings(D05.SI)$
$ocbc bank(O39.SI)$
$UOB(U11.SI)$
These banks offer:
- Stable earnings
- Attractive dividend yields
- Strong market presence
- Diversified revenue streams
$STI ETF(ES3.SI)$