Singapore banks have reported a stable first quarter for 2025, despite facing challenges such as lower benchmark rates and increased loan provisioning. According to RHB’s latest sector update, the banks have largely met expectations, but uncertainties in the macroeconomic environment persist. Dividends and capital returns are expected to play a crucial role in maintaining investor confidence.
RHB’s analysis places DBS as the top pick among Singapore banks, citing its attractive dividend yields and solid performance. The report also favours OCBC over UOB due to stronger asset quality metrics. The banks’ commitment to dividends and capital returns is seen as a stabilising factor in an otherwise muted earnings landscape.
The report highlights that whilst the banks have managed to navigate the initial months of 2025 effectively, the broader economic outlook remains uncertain. This uncertainty underscores the importance of strategic financial management and investor relations in the coming months.
In addition to the banking sector, RHB’s Singapore Morning Cuppa bulletin covers various topics, including sustainable practices in plantations and the ASEAN investment landscape. The bulletin also touches on Singtel’s recent asset sale, which aligns with its capital recycling strategy aimed at enhancing shareholder value.
As the year progresses, the focus will remain on how these financial institutions adapt to ongoing economic challenges and leverage their strengths to maintain stability and growth.
“`
