SG Banks Start the Year at Highs: Are You Celebrating or Profit-Taking?
January 6 was a meaningful day worth celebrating for many Singapore investors.
$OCBC Bank(O39.SI)$ broke through the $20 mark for the first time in history, opening at $20.04
$DBS(D05.SI)$ also set a new record, touching $57.48 intraday
Among Singapore’s three local banks, having two reach all-time highs at the same time is a rare sight over the past decade. This rally is no longer just about high dividend yields, it reflects a combination of earnings resilience, interest rate cycle expectations, and a return of local capital flows.
1. DBS: The “core asset” with one-way upward trend
The only notable pullback for DBS came in April 2025, following the announcement of the “Liberation Day” tariffs. Yet that decline did not derail the broader trend — instead, it became a re-entry opportunity for medium- to long-term investors.
Analyst views highlight a clear split:
JP Morgan is the most bullish, with a target price of $70 (Overweight)
Macquarie, on the other hand, sees valuation risk and assigns a $46 target (Underperform)
Is DBS still in a phase of valuation expansion, or has it entered a period of high-level consolidation?
2. OCBC: Is $20 a milestone or a psychological barrier?
Compared with DBS, OCBC’s move to record highs came later, but with greater momentum.
Consistently setting new highs since November 2025; Supported by strong non-interest income growth and lower provisions
Even though 9M25 net profit declined 4% YoY, the market has chosen to look ahead
Now that the share price is above $20, the issue of affordability per lot is resurfacing. Whether this leads to renewed stock split expectations or a liquidity premium has quietly become a topic of market discussion.
Goldman Sachs: Target price $21.20 (Buy)
3. Is It UOB’s turn?
With DBS and OCBC repeatedly hitting new highs, attention is naturally shifting to whether UOB could be next.
$UOB(U11.SI)$ is not far from its all-time high of $39.20, but the problem is still here.
Has the market fully digested the overly conservative provisioning? Or is it still waiting for a clearer catalyst?
Questions for SG Investors:
1️⃣ With DBS and OCBC at record highs, are you adding on strength or locking in profits?
2️⃣ Will UOB be the next bank to catch up, or continue to lag?
3️⃣ If 2026 does mark the start of a rate-cut cycle, can bank stocks keep rising?
Leave your comments or winning trades to celebrate this moment and win tiger coins~
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我仍然持有星展银行和华侨银行。星展银行仍然是我的核心银行头寸，2025年4月的回调只会增强我对其长期趋势的信念。华侨银行突破20美元感觉更像是心理上的解锁，而不是见顶，市场显然超越了近期的噪音，并对远期盈利势头进行了定价。
大华银行可能是下一个，但它可能需要更明确的催化剂来重新评级。即使2026年逐步降息，我也不认为这对当地银行不利——只要降息有序，强大的特许经营权仍然可以稳步复合。目前，我让我的赢家逃跑，而不是急于获利了结。
@TigerStars @Tiger_comments @Tiger_SG @TigerClub
With DBS and OCBC at record highs, are you adding on strength or locking in profits?
2️⃣ Will UOB be the next bank to catch up, or continue to lag?
3️⃣ If 2026 does mark the start of a rate-cut cycle, can bank stocks keep rising?
Leave your comments or winning trades to celebrate this moment and win tiger coins~
At a P/E ratio of 10.26 compared to DBS's 14.49 and OCBC's 12.30, UOB is certainly undervalued and a great buy for bargain hunters.
For investors who believe in UOB's long term ASEAN growth strategy and are comfortable with the perceived risks, UOB's lower P/E ratio offers a larger potential "margin of safety" compared to its more richly valued competitors.
For new investors, a great way to capture this phenomenonal rise in DBS and OCBC, is to invest in $STI ETF(ES3.SI)$ which represents all 3 banks at a low cost.
Congratulations to all who have invested in DBS & OCBC.🎉
@Tiger_SG @Tiger_comments @TigerStars
Treating DBS as a "core asset" with a one-way upward trend, portfolio rebalancing depends on whether the $20 mark for OCBC is a milestone or psychological barrier as investors weigh capital preservation against continued momentum
While UOB (U11) has recently lagged its peers, its valuation discount and emphasis on wealth management provide a defensive catch-up opportunity for value-oriented investors
If 2026 marks the start of a rate-cut cycle, bank stocks can still rise; resilience will depend on shifting focus from margin expansion to capital returns and buybacks, with diversified fee-based income supporting growth despite margin compression
Strategic positioning for the year ahead requires balancing the growth potential of SG banks with broader economic risks and evolving market conditions。。。
$华侨银行(O39.SI)$突破了$20史上首次标志，开幕于$20.04
$DBS(D05.SI)$也刷新了纪录，感人$57.48盘中
for me I will keep them but if price is really good, perhaps will sell some to take profits [Sly] [Sly] [lovely]
For long-term holders, this is a hold or selective trim, not an aggressive add. DBS Group and OCBC are pricing in peak ROE and stable credit conditions. Adding on strength only makes sense if dividends are the priority. Trimming into rallies to rebalance risk is rational.
2) Will UOB catch up?
UOB is the more plausible laggard-to-catch-up play. Its ASEAN exposure offers medium-term upside if regional growth improves, but near-term catalysts are weaker. Expect slower re-rating rather than a sharp catch-up.
3) Rate cuts in 2026: can banks still rise?
Yes, but returns will be dividend-led, not multiple-driven. NIMs will compress, yet loan growth, fee income, and asset quality should cushion earnings. Bank stocks can grind higher, but expect mid-single-digit total returns, not a repeat of the recent surge.
Bottom line: rotate selectively, prioritise yield, and temper expectations.
自以来持续创下新高2025年11月；支持方非利息收入增长强劲，拨备减少
尽管25年前9个月净利润同比下降4%，市场选择了向前看
现在股价已超过20美元，每手的可负担性问题重新浮出水面。这是否会导致重燃拆股预期或流动性溢价，已悄然成为市场讨论的话题。
When the tide is strongest, wise sailors reef a little sail. I let winners run, but I quietly secure the treasure already on deck. Strength is for riding, not for chasing.
2️⃣ Will UOB catch up
In every relay, one runner finishes late, then sprints hardest? If UOB finds its stride, the gap can close faster than most expect. Laggards only matter until leadership rotates.
3️⃣ Rate cuts and banks
When the river narrows, strong banks do not sink. They change how they flow. Rates may fall, but capital, dividends, and discipline still compound quietly beneath the surface.
站在这个位置，投资者真正要回答的，不只是“涨不涨”，而是：在历史新高，是选择增强核心仓位，还是先锁定部分利润？如果2026年真的开启降息周期，银行股还能否把这轮行情走得更远？这些问题，没有标准答案，但值得每个人认真思考。