The downturn was heavily influenced by Great Eastern's 72 percent profit plunge, which was hit by weaker investment valuations and an Indonesian divestment loss. DBS and UOB also recorded notable morning declines before slightly paring their losses by midday. Despite persistent margin pressures, analysts project that the banks will maintain resilient capital positions and underlying asset quality.
Key points
Local bank earnings updates commence with UOB on Nov 4, followed by DBS on Nov 5 and OCBC…: Local bank earnings updates commence with UOB on Nov 4, followed by DBS on Nov 5 and OCBC on Nov 6.
Market participants expect wealth management fees to moderate while pressure on lenders'…: Market participants expect wealth management fees to moderate while pressure on lenders' net interest margins continues.
Observers are closely tracking capital metrics, artificial intelligence financing exposur…: Observers are closely tracking capital metrics, artificial intelligence financing exposures, and the impact of rising bond yields.
Sources checked by our analysis pipeline: 1
Isabelle Chong
- Singapore banks fell before third-quarter earnings, with OCBC down 3.7%, DBS 2.5% and UOB 2.2%. Great Eastern’s 72% profit drop hit OCBC hardest.
- The losses dragged the Straits Times Index down 1.4% to 5,303.84 by noon. UOB reports on Nov 4, then DBS on Nov 5 and OCBC on Nov 6.
- Analysts expect softer wealth fees and pressure on net interest margins. They will also watch AI-linked lending, bond yields, and bank capital strength.
AI generated
SINGAPORE – Shares of Singapore’s three local banks traded lower on the morning of Nov 2, with OCBC recording the steepest decline, ahead of their earnings releases in early November.
As at 11.43 am, OCBC was down $1.07 or 3.7% at $28.22, while DBS fell $1.82 or 2.5% to $71.31. UOB declined $0.89 or 2.2% to $40.48.
OCBC’s sharper decline came after its insurance subsidiary Great Eastern reported a 72% year-on-year fall in third-quarter net profit to $102.9 million on Nov 2, weighed down by weaker investment valuations and a one-off loss from the partial divestment of its Indonesian…
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