DBS and OCBC at the Summit: Triumph or a Ticking Clock?
๐๐๐There is nothing quite like the feeling of joy on January 6 to see that both my investments in $DBS(D05.SI)$
The Dilemma: Adding on Strength or Locking in Profits?
This isn't just about numbers. It is a test of nerve.
The Case for Adding on Strength: Heavyweights like JPMorgan are bullish on DBS and OCBC. In a recent major move last year, JPMorgan raised its target price for DBS to a staggering SGD 70.00. This represents another 21% upside from these record levels. They believe that DBS is the ultimate safe haven with superior wealth management growth. For OCBC , their outlook remains equally robust, seeing it as a dividend fortress.
The Case for Locking in Profits: A 149% gain for DBS is a mountain of profit for me. The fear of a sudden mean reversion is real. Am I flying too close to the sun? If I lock in profits, what other better stocks can I invest that is better than DBS and OCBC currently? Deep in my heart, I cannot find other better stocks than these 2 top Singapore banks.
UOB: The Next to Catch Up or the Eternal Lagard?
UOB $UOB(U11.SI)$
The Hope: Value hunters see UOB as a "coiled spring". If it can resolve its asset quality concerns in 2026, the catch up could be explosive.
UOB's strength is its extensive network in the ASEAN region, which is one of the fastest growing regions in the world. UOB'S SGD 4.9 billion acquisition of Citigroup's banking business in Malaysia, Thailand, Vietnam and Indonesia, has effectively doubled its retail base in these markets, bringing its regional total to over 8 million customers.
The Fear: Analysts remain cautious, giving UOB a Neutral rating. For now it is the quiet sibling watching the other 2 banks celebrate.
Can the Rally Survive a Rate Cut Cycle?
If 2026 truly marks the dawn of a rate cut cycle, the Singapore banks face its greatest financial test: Net Interest Margin (NIM) pressure.
The Challenge: Falling rates usually squeeze bank profits. It is the "Cold Winter" scenario for lenders.
The Resilience: However the Singapore banks have prepared for the NIM pressure. All 3 banks have diversified into wealth management so deeply that they are no longer just "interest rate plays". They are global wealth engines.
OCBC's strength lies in their insurance business through Great Eastern. $Great Eastern(G07.SI)$ is the "crown jewel" that distinguishes OCBC from its peers, providing a powerful non bank earnings engine that adds a unique layer of resilience and defensive strength to the bank.
Concluding Thoughts
As I stand at the crossroad with DBS and OCBC at heights that I once thought impossible, the most powerful tool in my arsenal isn't a complex algorithm or a high speed trading platform, it is Patience.
As the late great Charlie Munger once said "The big money is not in the buying and selling, but in the waiting."
Charlie Munger also provides me with the ultimate shield against temptation to sell:
"The first rule of compounding is to never interrupt it unnecessarily".
@Tiger_SG @Tiger_comments @TigerStars @TigerClub @CaptainTiger
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