To The Moon

• Over the past month, DBS has rallied another 8% to extend its outperformance from 2025 where it finished as the 10th best performing index stock on the Straits Times Index with a 29% share price gain

• This year so far, the stock is up another 3% to refresh a new record high of $58.40 yesterday

• DBS call warrants are amongst the top performing warrants over the last 4 weeks with gains between 55% to 108% given DBS’ 8% increase. Conversely, DBS put warrants are amongst the worst performing warrants during this period with losses of 65% to 92%​​​​​​​

• Elsewhere, OCBC call warrant OAEW made a 42% advancement following OCBC’s 5.9% return over the past 4 weeks, while OCBC put warrant WQPW is amongst the top warrant losers with a 80% drop.

• Macquarie Warrants Singapore first posted about Macquarie Research’s (MQ) upgraded view on OCBC on 18 November 2025 as well as SGX Academy Trainer Joey Choy’s technical views on the share on 22 December 2025

• Given the most recent publication of November loan data in Singapore, MQ has released their latest research report on the Singapore banks

• Read more for the full article containing excerpts of MQ’s 2 January 2026 report and important disclaimers

Key points

• Total loans rose 0.8% month-on-month (MoM) (+5.7% year-on-year). Deposits rose 0.3% MoM (+7.3% year-on-year), although demand deposits contracted 0.6% MoM

• The system loan/deposit ratio increased 0.3% MoM to 66.8%, while the CASA ratio fell -0.3% MoM to 48.9%.

• MQ’s preference in the sector is OCBC (Outperform) > UOB (Neutral) > DBS (Underperform).

Observations from the data

Business loans increased +0.8% MoM, following a decrease the prior month. On a year-on-year (YoY) basis, total business loans were up 5.1%. Manufacturing loans decreased 0.7% MoM (+4.5% YoY) and transport loans increased 4.2% MoM (+13.4% YoY). Building and construction loans declined 0.1% MoM (flat YoY) while financial institutions loans rose 1.4% MoM (+7.0% YoY).

Mortgage loans increased 0.5% MoM (+4.4% YoY). New private residential sales were 325 units in Nov-25, down 87.0% YoY as launches happened in earlier months. 77 units were sold at the only new condominium launched in November – The Sen in Upper Bukit Timah. Credit-card loans increased 3.0% MoM (+7.5% YoY). Total consumer loans rose 7.1% YoY as of end Nov-25.

Deposits increased 0.3% MoM (+7.3% YoY). Savings deposits increased 0.1% MoM, while fixed deposits increased 0.2% MoM. The low-cost current and savings account (CASA) deposit ratio stood at 48.9%, down 0.3% MoM. The banking sector LDR increased 0.2% MoM (-1.1% YoY) to 66.8%, following a decrease the prior month.

MAS maintained the SGNEER slope at its recent October meeting, after two earlier easing moves this year, as economic uncertainty eased with the conclusion of trade deals.Singapore’s GDP grew by 4.2% YoY in 3Q25, based on MTI's release.MTI's forecast for 2025 GDP growth was raised to around 4.0% (from 1.5–2.5%) due to stronger-than-expected performance in 3Q25. For 2026, MTI expects GDP growth of 1.0% to 3.0%, as Southeast Asia’s GDP, along with Singapore’s manufacturing growth, slows.Singapore's Oct-25 core CPI rose to 1.2%, the highest level since Dec-24, due to higher inflation in services, food, retail and other goods. MAS and MTI project core inflation at 0.5% in 2025 and 0.5-1.5% in 2026

OCBC and UOB ratings upgraded recently

• MQ recently upgraded OCBC to Outperform due to its wealth performance, defensive balance sheet, and cautious guidance, and UOB to Neutral as the large provision charge in 3Q25 clears the decks for better sequential performance, in MQ’s view.

• DBS continues to perform strongly, with hedges providing a cushion in the near term on Net Interest Income, but headwinds grow as hedges roll off in 2026.

DBS: Underperform rating; 12-month target price of $46.00 based on a Price-to-Book stock methodology.

OCBC: Outperform rating; 12-month target price of $19.90 based on a Price-to-Book stock methodology.

UOB: Neutral rating; 12-month target price of $31.91 based on a Gordon Growth Model stock methodology.

Note:Macquarie Research is independent from the Warrants business, what the Macquarie Warrants desks quote from Macquarie Research may not reflect the complete analysis of Macquarie Research on the relevant company over time.

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Macquarie has trending call and put warrants on tight spreads and high liquidity tracking the three banks.

Investors keen to capitalise on the volatility of the Singapore bank shares may wish to consider using them to do so.

Interested investors can use the Exposure Simulator tool (https://warrants.com.sg/tools/exposuresimulator) to estimate the warrant price performance of any of the warrants based on your target exit levels in the stocks.

Trending DBS call $DBS MB eCW260330(8Y5W.SI)$ : https://warrants.com.sg/tools/exposuresimulator/8Y5W

Trending DBS put $DBS MB ePW260630(RBFW.SI)$ : https://warrants.com.sg/tools/exposuresimulator/RBFW

Trending OCBC call $OCBC Bk MB eCW260630(OAEW.SI)$ : https://warrants.com.sg/tools/exposuresimulator/OAEW

Trending OCBC put $OCBC Bk MB ePW260630(UVTW.SI)$ : https://warrants.com.sg/tools/exposuresimulator/UVTW

Trending UOB call $UOB MB eCW260330(9MRW.SI)$ : https://warrants.com.sg/tools/exposuresimulator/9MRW

Trending UOB put VJ7W: https://warrants.com.sg/tools/exposuresimulator/VJ7W