SG Banks Slips! What’s Your Time Span for Holding Banks?

Tiger_SG
10-16
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Singapore’s three banking giants — $DBS(D05.SI)$ , $OCBC Bank(O39.SI)$ , and $UOB(U11.SI)$ — have all retreated recently, as investors brace for an expected Fed rate cut cycle. The question now is: where’s the focus when growth slows but dividends stay strong?

DBS: The Dividend Anchor

DBS just delivered another solid quarter — total revenue up 6% YoY to S$5.9B and net profit at S$2.9B, slightly lower due to global minimum tax adjustments.

Still, the bank rewarded shareholders with a S$0.75 per-share dividend, up nearly 39% YoY, including a special S$0.15 capital return.At current levels (~S$54.8), that’s a ~5.5% yield — one of the highest in the region.

Why Dividends Matter Now

As rates begin to normalize, net interest margins (NIMs) may soften, but banks like DBS remain supported by:

  • Record fee income from wealth management and cards

  • Strong balance sheets and stable credit quality

  • Continued buybacks and payout growth signaling confidence

With yield curves flattening, investors are shifting from rate-driven earnings toward cash flow visibility and sustainable dividends.

Other dividend plays are attracting renewed attention:

💬 Your Turn

Rate cuts are coming — but dividends remain strong. So, investors, what’s your move?

1. Prefer holding for income (dividend play)?

2. Rotating into growth or cyclical?

3. Or just waiting for a better entry after the pullback?

SG Banks Slips! What’s Your Time Span for Holding Banks?
Singapore’s three banking giants — DBS, OCBC, and UOB — have all retreated recently, as investors brace for an expected Fed rate cut cycle. The question now is: where’s the focus when growth slows but dividends stay strong? How long do you plan to hold banks? Do you hold them for dividends? Is short term pullback not a thing for you?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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Comments

  • Cadi Poon
    10-16
    Cadi Poon
    星展銀行剛剛實現了又一個穩健的季度——總收入增長同比6%至S$5.9 B及淨利潤爲S$2.9 B，因全球最低稅調整而略有下降。

    儘管如此，該銀行仍以每股0.75新元的股息獎勵股東，同比增長近39%，其中包括0.15新元的特別資本回報。按照目前的水平（約54.8新元），收益率約爲5.5%，是該地區最高的收益率之一。

  • koolgal
    10-17
    koolgal
    🌟🌟🌟With interest rate cuts on the horizon, Singapore bank stocks like DBS, OCBC and UOB offer a rare blend of dividend income and capital growth.

    All 3 Singapore banks have a phenomenal track record of capital growth - and at the same time maintaining consistent dividends.

    I am a long term investor of all 3 banks and they have rewarded  me with great dividends and fantastic capital growth.  Despite the recent pullbacks I am not selling as it is hard to find such great Singapore stocks to buy and hold long term.

    @Tiger_SG @Tiger_comments @TigerStars @CaptainTiger @TigerClub

  • Shyon
    10-16
    Shyon
    I maintain two strategies — one focused on growth stocks and another on dividend plays like Singapore’s major banks. With rate cuts approaching, I still value DBS, OCBC, and UOB for their strong balance sheets and reliable payouts. DBS, in particular, remains my core dividend holding thanks to its consistent earnings and attractive yield.

    At the same time, I keep a separate growth portfolio targeting sectors like technology and AI, where structural trends continue to drive earnings expansion. This helps balance the slower but steadier returns from dividend stocks, giving me exposure to both stability and long-term upside.

    Rather than rotating fully into one side, I stay flexible — adding selectively during market pullbacks. If bank valuations dip further, I’ll top up for yield; and if growth names correct, I’ll accumulate for capital appreciation. This dual approach lets me capture both income stability and future growth potential.

    @Tiger_SG @Tiger_comments @TigerStars

  • L.Lim
    10-21
    L.Lim
    Holding on when you bought in at a good price is a reasonable decision. However, if one entered due to the hype, it might be wise to divest and enter again after the rate cuts take effect and everything settles down.

    There had to be expectations that the interest rates would have to fall and have realistic expectations (even though the belief in SG banks as a stable and safe option is the prevalent sentiment).

    As above, wait for the rate cuts to take effect, the lag to clear up then enter at a better price since SG banks are reasonably safe investments.

  • Tiger_SG
    10-20
    Tiger_SG
    Thanks for participating in my discussion. Your coins have been sent through the tiger coin center!
    Check them in the history - “community distribution“
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  • 1PC
    10-19
    1PC
    SG banks slipping 📉 [LOL]but I’m not chasing dividends — I’m focused on capital growth 📈[Duh]. DBS’s 5.5% yield is solid 💰, but I’m waiting for a better entry after the pullback[Sly]. Rate cuts may soften NIMs, so I’d rather rotate into growth once the dust settles. Not a yield hunter, just timing my shot[Grin] 🎯.@JC888 @Barcode @Shyon @koolgal @Aqa @DiAngel @Shernice軒嬣 2000
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