S’pore banks Q2 earnings: DBS, OCBC shares could go higher; asset quality concerns resurface at UOB
Singaporean banks DBS and OCBC are seeing share price growth driven by wealth management, while UOB faces challenges due to asset quality concerns in Greater China. Analysts remain generally optimistic about the sector's transition into regional wealth platforms.
Why it matters
The performance of Singaporean banks serves as a key indicator for the broader Asian financial market and regional economic stability.
Saxo chief investment strategist Charu Chanana said Singapore banks are becoming regional wealth platforms and are no longer simply a proxy for interest rates.
Listen SINGAPORE – DBS and OCBC shares have hit fresh highs but could climb further, while asset quality concerns at UOB could affect near-term profitability, analysts said.
This comes after the three Singapore banks reported second-quarter profit growth, with wealth management and other fee income offsetting pressure on lending margins.
Saxo chief investment strategist Charu Chanana said Singapore banks are no longer simply a proxy for interest rates. They are becoming regional wealth platforms – and that may prove to be the more durable investment story, she said.
DBS shares rose to a fresh peak of $77.97 on Aug 11 before closing at $76.99 – 0.86 per cent higher.
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