Top bank stocks to watch in Singapore
Singapore bank stocks remained resilient in 2025, with DBS, OCBC, and UOB showing strong fee income growth and stable fundamentals despite margin compression. Read the latest analyst ratings, price targets, and trading/ investing strategies for DBS, OCBC, and UOB.
Key takeaways
- UOB offers the highest dividend yield (6.7%), while DBS leads on profitability.
- Banks faced margin pressure from falling interest rates in 2025, but this was offset with growing fee income and efficiency gains.
- Analysts viewed DBS and OCBC shares as 'buy', and UOB shares as 'hold' as of November 2025.
Singapore bank stocks market overview 2025
Singapore’s banking sector continues to anchor the Straits Times Index (STI), with DBS Group (SGX: D05), OCBC (SGX: O39), and UOB (SGX: U11) collectively representing over 50% of the STI’s weight.
Following record earnings in 2024, these banks maintained momentum in 2025, supported by interest income growth, regional diversification, and strong capital buffers.
DBS, OCBC and UOB Q3 2025 performance snapshot
Bank
|
Net profit (Q3 FY2025)
|
Net profit change (YoY)
|
Net interest margin (Q3 FY2025)
|
Net interest income (YoY)
|
DBS
|
S$2.95 billion
|
-2%
|
1.96%
|
-1%
|
OCBC
|
S$1.98 billion
|
-
|
1.84%
|
-9%
|
UOB
|
S$1.9 billion
|
-72%
|
2.02%
|
-8%
|
DBS saw net profit dip 2% year-on-year (YoY) despite achieving ‘record’ total income in the third quarter of the 2025 financial year (Q3 2025), mainly due to higher tax expenses.
OCBC maintained net profit at a similar level as Q3 2024, while UOB experienced a significant YoY decline of 72% (mainly due to pre-emptive general allowances amid ongoing macroeconomic uncertainties and sector-specific headwinds).
DBS, OCBC and UOB dividend yield and payout ratio 2025
Bank
|
Dividend yield (2025)
|
Dividend per share (FY2025 YTD)
|
Dividend payout ratio (FY2025 target)
|
DBS
|
5.18%
|
S$2.25 (includes capital return dividend)
|
~55%
|
OCBC
|
5.24%
|
S$0.41
|
60%
|
UOB
|
6.65%
|
S$0.85
|
~50%
|
*as of November 2025
Key takeaways:
OCBC is the only bank to formally raise its payout ratio to 60%, signaling stronger capital distribution confidence.
DBS and UOB continue to maintain stable payout policies, with DBS offering additional capital returns and UOB supplementing with special dividends.
DBS, OCBC and UOB share price analysis
Bank
|
Consensus rating*
|
Share price target (12-months)*
|
Available for CFD trading with IG?
|
Available for investing with IG Markets Singapore app?
|
|
Outperform
|
S$60.43
|
✔
|
✔
|
Oversea-Chinese Banking Corporation (OCBC)
|
Outperform
|
S$19.03
|
✔
|
✔
|
|
Neutral
|
S$35.97
|
✔
|
✔
|
*as of November 2025
1. DBS Group (SGX: D05)
Share price target (12-months): S$60.43
Consensus rating: Outperform
Stock outlook: Analysts at S&P Global Market Intelligence and FT Markets have maintained a ‘buy’ consensus on DBS Group shares. The stock traded at S$54.86 on 11 November 2025, just 1.3% below its 52-week high of S$55.59. Analysts stated DBS’ strong return on equity (17.1%), CET1 ratio (16.9%), and consistent dividend strategy underpin its appeal to retail investors.
Trading data (November 2025):
- Three-month average price: S$44.20
- Three-month average daily volume: ~2.8 million shares
- Volatility: Moderate (±2.1% daily average)
- Liquidity: High
2. OCBC (SGX: O39)
Share price target (12-months): S$19.03
Consensus rating: Outperform
Stock outlook: Analysts at DBS upgraded their rating on OCBC shares to ‘buy’ alongside a higher price target of S$19.80. They cited its higher dividend yield (‘attractive compared to peers’), ‘robust’ capital position, and Q3 2025 earnings beat.
Trading data (November 2025):
- Three-month average price: S$16.02
- Three-month average daily volume: ~2.1 million shares
- Volatility: Low (±1.7% daily average)
- Liquidity: High
3. UOB (SGX: U11)
Share price target (12-months): S$35.97
Consensus rating: Neutral
Stock outlook: RHB analysts kept a ‘neutral’ rating on UOB shares while lowering share price target to S$36.10 (down from S$38.80), as of 7 November 2025. They also cut UOB’s FY2025 to FY2027 full-year PATMI (profit after tax and minority interests) by 14%, 4%, and 4% respectively.
Trading data (November 2025):
- Three-month average price: S$34.40
- Three-month average daily volume: ~1.9 million shares
- Volatility: Moderate (±2.0% daily average)
- Liquidity: High
Trading and investing in Singapore bank shares: key differences
For those exploring Singapore bank stocks, understanding the distinction between trading and investing is crucial. Traders typically focus on short-term price movements, often driven by quarterly earnings, interest rate shifts, and macroeconomic news. For example, a trader might buy DBS shares ahead of its Q3 earnings release, anticipating a dividend announcement or fee income surprise.
Investors, on the other hand, prioritise long-term fundamentals, such as return on equity (ROE), dividend sustainability, and regional growth exposure. OCBC’s integration with Great Eastern Holdings and its 5.24% dividend yield make it attractive for income-focused investors. UOB’s expansion into ASEAN markets offers growth potential for those investing in Singapore stocks with regional upside.
Trading strategies often rely on technical analysis and short-term catalysts, while investing involves evaluating financial statements, management quality, and macro trends. Both approaches benefit from Singapore’s transparent regulatory environment and the banks’ consistent reporting standards.
Whether you're looking to trade DBS, OCBC or UOB shares for short-term gains or invest in them for long-term dividends and stability, aligning your strategy with your goals — along with understanding risk management techniques — is key to success.
Quick fact
Trading is taking a position on financial market underlyings through instruments like CFDs without having to own them; whereas, investing is taking outright ownership of financial assets.
Read all about CFD trading vs investing.
How to trade and invest in SG bank stocks with IG Singapore
CFD share trading
- Create a live or demo account
- Find an opportunity among one of our 10,000+ stocks with our stock screener
- Click ‘buy’ to go long or ‘sell’ to short
- Set your position size
- Take steps to manage your risk
- Open and monitor your position
Investing
- Open an account via IG Markets Singapore app
- Search for Singapore bank stocks on the app
- Choose the shares you want to buy
- Determine how many shares you want to purchase
- Place your order
- Monitor your investment and collect any dividends
FAQs about Singapore bank stocks
Can I trade Singapore bank stocks from Singapore?
Yes, you can trade Singapore bank CFD stocks such as DBS, OCBC, and UOB via local brokers like IG Singapore. These platforms offer real-time access to SGX-listed shares with competitive fees. For investing, use the IG Markets app.
Can I invest in Singapore bank stocks for the long term?
Absolutely. DBS, OCBC, and UOB are among the most stable and profitable companies in Singapore, offering consistent dividends and strong capital positions. As of November 2025, all three banks have reported strong earnings, high return on equity (ROE), and robust capital buffers.
What are the risks of investing in Singapore bank stocks?
Key risks include interest rate volatility, slower loan growth due to macroeconomic headwinds, and regulatory changes. Banks may also face margin compression if benchmark rates fall further, and credit costs could rise in a downturn.
Are Singapore bank dividends taxable?
No, dividends paid by Singapore-listed companies such as DBS, OCBC, and UOB are not taxable for individual investors. Singapore follows a one-tier corporate tax system, which means dividends are paid out of already-taxed profits and are exempt from further taxation in the hands of shareholders. This applies to both local and foreign individual investors.
When is the best time to trade Singapore bank stocks?
Liquidity is highest during SGX trading hours (9:00 AM to 5:00 PM SGT). Volatility tends to increase around earnings announcements, MAS policy updates, and global macroeconomic events that affect interest rates or credit demand.
Are Singapore bank stocks suitable for beginner investors?
Yes. DBS, OCBC, and UOB are large-cap, well-governed institutions with strong track records. Their consistent dividends and transparent reporting make them ideal for beginners looking to invest in Singapore stocks. Using dollar-cost averaging and setting stop-loss levels can help manage risk effectively.
Ready to trade or invest in Singapore bank stocks?
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