06/08/2026
[Singapore Bank Results 1Q2026]
All three Singapore banks have released their latest quarterly results, and overall, their performance remains strong, with earnings reaching record-high levels despite declining net interest margins.
If you have held Singapore bank stocks over the past three years, you could be sitting on substantial gains:
📈 DBS: ~150%
📈 OCBC: ~133%
📈 UOB: ~54%
However, valuations have also risen to extremely high levels. DBS, for example, is now trading at around 3x price-to-book (P/B). I can’t recall seeing Singapore banks valued at such elevated levels before.
At these valuations, investors may want to consider locking in some profits and rotating into other opportunities, or simply waiting for a market pullback before re-entering.
Key Takeaways from the Latest Results
✅ Profits remain strong
All three banks reported positive year-on-year net profit growth, with OCBC recording the strongest growth at approximately 22%.
✅ Net interest margins are declining
NIMs fell across all three banks, in line with the lower interest-rate environment in Singapore.
✅ Dividend yields are becoming less attractive
Excluding special dividends, the banks are offering dividend yields of around 3%+, with OCBC's yield at below 3.03%. At current share prices, I find the dividend yields less compelling.
✅ Valuations are at elevated levels
Current P/B ratios are approximately:
• DBS: 3.04x
• OCBC: 2.14x
• UOB: 1.45x
DBS's valuation, in particular, is at an extreme level compared with what we have historically seen.
✅ What am I doing?
I have sold all my bank holdings for now. I will consider re-entering when the market pulls back and valuations become more attractive.
I personally prefer not to chase share prices, especially when valuations are already elevated.
💬 My entry and exit price levels based on valuation are shared in the comments section.
Capital Return Announcements
📌 DBS: Plans to return capital through an additional $0.15 quarterly dividend in FY2025. Over the following two years, it expects to distribute a similar amount through dividends or other mechanisms, barring unforeseen circumstances.
📌 OCBC: Plans to return S$2.5 billion to shareholders over two years through special dividends and share buybacks. Special dividends will amount to 10% of net profit for FY2024 and FY2025, with the remainder returned through share buybacks.
📌 UOB: Proposed a $0.50 special dividend in 2025 as part of its capital distribution plan to mark its 90th anniversary, payable in two tranches.
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