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Singapore Banks Earnings

The three local banks, DBS, OCBC & UOB comprise the lion’s share of the Straits Times Index (STI), so it is little surprise that their earnings announcements are closely watched.

Singapore bank Q2 earnings – Holding steady

Company Earnings Report Date
UOB 27 July 2017
DBS 28 July 2017
OCBC 4 August 2017


Singapore’s Q2 earnings will hit the markets from 27th July, starting with OCBC and concluding with the largest bank, DBS, on 4th August. After the jump in prices following the set of better-than-expected Q1 2017 earnings, prices for the three biggest banks in Singapore had been lacklustre, gaining slowly on revenue expectations and supported by broadly stable market conditions. The mid-year mark for earnings reports is expected to be an opportunity for investors to assess whether the strong expectations have been well-placed.

Singapore banks results and expectations





Q1 Revenue (billion)




Q2 Revenue estimate (billion)


(-2.7% YoY)


(+9.6% YoY)


(+4.2% YoY)

Q1 EPS Adj.




Q2 EPS Adj. estimate


(+3.5% YoY)


(+1.2% YoY)


(+7.5% YoY)

Q1 Net income Adj. (billion)




Q2 Net income Adj. estimate (billion)


(+6.2% YoY)


(+3.18% YoY)


(+6.17% YoY)

Source: Bloomberg

The latest earnings consensus surveyed by Bloomberg suggests that we could be seeing positive revenue growth for OCBC and UOB while EPS and net income growth are expected to cut across all three banks. The latest bank loans and advances growth appear to show the positive growth trend sustaining into Q2. An average 6.9% year-on-year growth rate for bank loans had been recorded between April and May, suggesting that business remains broadly robust for local banks. On the other hand, the banks’ net-interest margins (NIMs) remain largely flat in the second quarter, unlikely to contribute significantly to revenue growth changes in the upcoming report. 

Meanwhile, concerns over oil and gas sector performance may have picked up in Q2 on the back of sliding crude prices. However the dips are unlikely to have triggered a significant worsening of non-performing loan performances and as such, provisions are expected to remain largely stable. Guidance from the local banks following Q1 earnings releases had been that bad loans have peaked, shifting investors’ focus towards growth potential. 

Year-to-date (YTD) gains for DBS and OCBC were both seen at approximately 24.1% as of 20 July 2017 while UOB trails behind at approximately 17.5%. Across the Singapore Index, which had surged approximately 14.6% YTD, banks had indeed outperformed. The next leg forward for domestic banking stocks would depend largely upon the performance of Q2 earnings in the near-term and the case for further upsides certainly appears to be strong with the current backdrop.

Technical Analysis of OCBC

Amongst the trio of banks, OCBC has shown a strong uptrend from a technical perspective, touching a fresh all-time high while DBS and UOB remain capped by earlier records. Watch for a break above the $11.20 resistance for further upward momentum and the case remains strong with this one with strong profit expectations.


Earnings Release: 27 Jul 2017
Market Cap: S$46.81 billion1

Registered in 1932, Oversea-Chinese Banking Corporation Limited (OCBC) is the oldest bank in Singapore, after a merger of three Hokkien lenders. It counts OCBC Securities and Great Eastern Holding Ltd among its subsidiaries. The bank has a presence in 18 countries and territories, and is the second-largest financial institution in Southeast Asia (SEA) by assets.

Live OCBC prices


Earnings Release: 28 Jul 2017
Market Cap: S$40.07 billion1

United Overseas Bank (UOB) was set up in 1935 and is now the third-largest bank by assets in Southeast Asia. Having started out as United Chinese Bank, UOB was renamed in 1965 and it now has over 500 offices across 19 countries and territories. The bank is increasing its yuan business, with the asset management arm securing a RQFII licence in June 2015.

Live UOB prices


Earnings Release: 4 Aug 2017
Market Cap: S$55.05 billion1

Development Bank of Singapore (DBS) is the largest bank in Singapore by assets and was initially established by the Singapore government to assume industrial financing activities. DBS acquired the Asian private banking business of Societe Generale in 2014, and was the only ASEAN bank to be ranked among the world's top 50 private banking brands in 2015.

Live DBS prices

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1 Source: Bloomberg (July 2017)

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