Taking ownership: Would you like to become a shareholder of your bank?
Hi, mooers! ![]()
Banks are a critical component of our daily lives, serving as intermediaries for various financial needs such as receiving monthly salaries, applying for large loans, and transferring money to others. What is your go-to bank for handling your day-to-day financial transactions? What types of transactions do you usually perform?
Besides providing convenience for our daily lives, banks also offer ample investment alternatives to grow our wealth. However, have you ever considered that the banking sector itself could be a valuable investment option?
Many investors have already recognized the potential of investing in bank stocks, many of which pay dividends, signifying a robust track record of growth and sharing profits. Have you considered investing in your go-to bank? Which bank stock do you find most promising? ![]()
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DBS, OCBC, and UOB—Singapore's top three banks
Singapore's banking industry is widely recognized globally as one of the most resilient and secure, with projected total assets set to exceed $2 trillion by 2023.
$DBS Group Holdings(D05.SG$, $OCBC Bank(O39.SG$ and $UOB(U11.SG$ are the three leading local banks, surpassing over 100 other banks, holding over 60% of the commercial banking system. Global Finance rated these banks as the top three safest banks in Asia for the year 2023.
How did the three banks perform in Q3 2023 earnings?
In November, all three major banks released their Q3 2023 financial reports. Let's recap their performance based on four metrics: financials, net interest margin & loan growth, non-performing loan ratios, and valuations.
1. Finance：
The high-interest rate environment has boosted the Net Interest Income (NII) of Singapore's top three banks. In terms of financial performance, DBS continues to lead in both total and net income, with a total income growth of 16% year over year. Notably, underpinned by income growth, OCBC's Group net profit rose 21% from the previous year to S$1.81 billion, making it the fastest-growing among the three major banks.
2. Net interest margin and loan growth：
In Q3 2023, the NIM of Singapore's top three banks showed marked improvement compared to the same period last year. Among them, OCBC showed the most outstanding NIM at 2.27%, driven by the higher margin across the Group's key markets. UOB had the largest increase, up 35 basis points YoY.
High-interest rates and relatively slow economic growth have affected loan growth. Compared to the previous quarter, DBS and OCBC's customer loans only grew by 1% in Q3. After merging with Taiwan's Citibank, DBS saw a S$10 billion increase in loans and witnessed a decline in both trade and non-trade loans.
3. Non-performing loans ratio：
In this quarter, OCBC retained a strong capital, funding, and liquidity position, with its non-performing loan (NPL) ratio declining to 1.0%, returning to pre-pandemic levels. In Q3, DBS followed closely with an NPL ratio of 1.2%. On the other hand, UOB had the highest NPL ratio at 1.6%.
4. Valuation：
In terms of valuation, DBS' price-to-book (PB) ratio decreased slightly from the previous quarter but remained relatively high. UOB, on the other hand, is trading just above its book value, with the lowest PB ratio of 1.02%. OCBC remains relatively cheap as well, with a PB ratio of 1.09 times.
It appears that the Fed's interest rate hike cycle has come to an end. While potential rate cuts may lead to a decrease in banks' net interest income, lower rates could also increase loan demand and boost revenue growth. What is your outlook on the future development of Singapore's top three banks? Which bank do you favor the most?
1. What is your go-to bank for handling your day-to-day financial transactions? What types of transactions do you usually perform?
2. Have you considered investing in your go-to bank? Which bank stock do you find most promising?
3. Are you bullish on the future performance of Singapore's top three banks in the next quarter? Will you consider investing in Singapore banks to diversify your investment portfolio?
...
Dec 19, 2023 - Jan 2, 2024
2,000 points: for writers of the top 5 influential posts over 50 words
88 points: for all writers of on-topic posts over 30 words
Notes:
Selection is based on post quality, originality, creativity, and influence.
Posts that are not original or relevant shall be excluded.
All rewards are mutually exclusive.
All rewards will be distributed to your universal account within 15–30 working days after the winner's announcement.
This presentation is strictly for informational and educational purposes and is not a recommendation or endorsement of any particular investment or investment strategy. See this link for more information.
Resource：
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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mr_cashcow : Becoming a shareholder of a bank🤔
Siewlun Ha : OCBC stocks are most suitable for small capital retail investments. Bank stocks generally have low risk. They are especially popular among retirees!
1016551418 : Banks are extremely and supremely controlled and regulated by the Monetary Authority of Singapore. they are very safe as Singapore is a global financial centre and we keep a close watch on the banks so they are very professional
102678535 : Hi Singapore Moo Moo Community, like all of you, DBS is the go-to bank for my day- to- day financial transactions from mundane GIRO applicatiion for payment of electricity, water bills to bank mortage loan request for buying of property or serving of housing loans. 2) Yes, did consider investing in bank since one put one's savings into the bank. I find that UOB bank stock is the most promising to reap higher dividends returns although DBS rank top. 3) In next quarter will be bullish for DBS, OCBC and UOB. Yes, I will invest in Singapore bank to diversify my investment portfolio in this volatile stock market
撒花 : Safe dividend payers - and yes definitely will have our local banks in regular portfolios
Personally I prefer DBS given it’s consistent dividend payment. But all 3 r not bad. Happy New Year Mooers and wish everyone Huat Huat more!
Roll2me : Out of 3 banks I am almost equally split between DBS and OCBC. Both bank are very well managed. DBS command more premium and with nominal share around 32 dollar per share it’s more difficult for cost averaging/trade. OCBC with 12 dollar per share easier to cost average for small investors. OCBC valuation is cheaper and dpu is better as well