To The Moon

Here is your Q2 2025 earnings digest for Singapore’s big‑three banks:

---

📊 Q2 2025 Performance Summary

DBS Group (D05.SI)

Net profit climbed 1% YoY to S$2.82 billion, beating the S$2.77 billion consensus estimate .

Driven by higher total income, particularly robust fee & commission income, while net interest income dipped ~4% due to margin compression .

Dividend: 60¢ ordinary + 15¢ capital return (up 11% from a year ago for the ordinary component) .

Profitability eased: ROE down to 16.7% (from 18.2%); NIM fell to 2.05% (from 2.14%) .

Maintained full-year 2025 outlook: NII expected to be slightly above 2024 levels; net profit anticipated below 2024 levels .

OCBC (O39.SI)

Net profit declined 7% YoY to S$1.82 billion, in line with market expectations .

Decline driven by lower net interest income and narrowing margin (NIM trimmed to 1.90–1.95%) .

Interim dividend maintained at $0.41 per share (≈50% payout ratio) .

Revised outlook: expects net interest income to decline mid-single digits; flagged ongoing tariff-related uncertainty .

UOB (U11.SI / UOBH.SI)

Net profit fell 6% YoY to S$1.34 billion, missing analysts’ S$1.47 billion consensus .

Decline was primarily due to reduced net interest income; interim dividend cut slightly to 85¢ (‑3.4%) .

Updated full-year guidance: expects loan growth in low single digits (down from previous high single-digit target), fee income growth downgraded to high single digits .

---

💱 Trade Outlook & Strategy

DBS

Bullish case: Resilient fee income and wealth management growth are cushioning the impact of rising rate pressure. Capital return/dividend raises imply strong liquidity and earnings stability.

Caution: Limited upside from margins and slightly lower expected full‑year net profit tonally weigh on momentum.

Trading: A tactical long position with tight stop range near recent highs. Suitable for investors chasing yield and stability.

OCBC

Bullish case: Well-diversified revenue helps offset declines in interest income; stable dividend and strong wealth AUM (>S$310 billion) .

Risks: Longer‑term margin compression, slowing net interest income, tariff uncertainty cloud earnings recovery.

Trading: Neutral to mildly positive—long only on pullbacks or dividend yield gap trades.

UOB

Bullish case: Conservative loan growth expectations help manage credit risk; still profitable and capital-strong.

Risks: Missed estimates and reduced guidance raise concerns over slower momentum; dividend cut suggests cautious capital allocation.

Trading: Underweight / avoid in the near term. Consider selective short positions or hedged exposure if broader banking sentiment weakens.

---

🧾 Summary Table

Bank Q2 YoY Profit Outlook Dividend Trade View

DBS +1%, beat Maintained 60¢ + 15¢ Positive (momentum/yield play)

OCBC –7%, in line Trimmed NII 41¢ Neutral–mildly positive

UOB –6%, missed Lower expectations 85¢ Cautious / underweight

---

✅ Final Take

DBS is the most resilient and offers a clear yield‑plus‑growth profile; it is the preferred name for structurally bullish positioning.

OCBC makes sense for income-focused investors willing to tolerate slower growth in exchange for consistent payouts.

UOB carries higher risk; only attractive if concerns over sector pressure escalate or if guidance improves.