DBS, OCBC & UOB Outlook: Dividends, Earnings, Yields, and Valuations of Singapore’s Big-Three Banks [2025]

DBS, OCBC, and UOB are more than just household names—they form the core of Singapore’s financial system and equity market. With a combined market capitalization exceeding S$180 billion, these three banks make up approximately 50% of the Straits Times Index (STI) and are among the most liquid, widely held, and closely tracked stocks on the Singapore Exchange.

All three are regarded as blue-chip stalwarts, delivering a unique combination of stability, dividend consistency, and exposure to regional growth. Their long-term track record speaks for itself: between 2020 and 2025, DBS returned +166%, OCBC +96%, and UOB +82%, all while maintaining prudent capital buffers and sustainable dividend policies.

For investors seeking steady income and structural exposure to Southeast Asia’s economic engine, the big-three banks continue to offer a compelling balance of yield, growth, and resilience. This outlook takes a deep dive into their latest earnings, dividend trends, valuation levels and how you can invest in them.

Key Takeaways

Record-high profits underpin generous dividends.

DBS, OCBC and UOB ended 2024 with a combined S$25 billion in net profit, giving their boards confidence to lift ordinary payouts and, in two cases, launch additional capital-return dividends and share-buy-backs. In the first half of 2025, the trio delivered another S$12.25 billion in profit despite margin pressure—reinforcing their ability to fund consistent dividends through fee growth, disciplined costs, and strong capital buffers.

Capital ratios remain well above regulatory buffers.

Each bank’s CET1 ratio exceeds 15%—at least 5 percentage points above MAS requirements—providing ample shock-absorption should margins compress when global rates ease.

Forward yields still eclipse most low-risk cash instruments.

Even after this year’s share-price rally, projected dividend yields hover around 5% to 6%, comfortably outpacing Singapore Savings Bonds, T-Bills and promotional fixed-deposit rates.

Valuations diverge, giving investors a choice.

DBS trades near 2× book value, reflecting ROE leadership and digital scale, while OCBC and UOB sit closer to 1.2× book, appealing to value-oriented income seekers.

Multiple purchase routes suit different budgets and styles.

Investors can hold the banks directly via CDP-linked brokers, minimise fees with custody platforms, automate monthly buys through Regular Savings Plans, or gain indirect exposure via STI ETFs—each option credits dividends in tax-free Singapore dollars.

Singapore’s banking sector revolves around three flagship institutions: DBS Group Holdings (SGX :D05), Oversea-Chinese Banking Corporation (SGX :O39) and United Overseas Bank (SGX :U11). Each traces its roots to nation-building decades ago, yet all three now generate most of their income beyond Singapore’s shores. Their ability to pair regional growth with disciplined capital management produced another year of record profits in 2024 and positions them to continue rewarding shareholders in 2025.

Setting the scene

Interest-rate cuts are on the horizon, but the shift is likely to be gradual. Net-interest margins may normalise from 2024 highs, yet healthy fee momentum in wealth management, cards and treasury services continues to support revenue across the board. In the first half of 2025, all three banks reported solid top-line growth despite modest profit declines—underscoring their earnings resilience even as funding costs stabilise. Meanwhile, each bank maintained CET1 ratios above 15%, far above the Monetary Authority of Singapore’s systemic-buffer requirement. This capital strength has allowed boards to proceed with progressive dividends and, in two cases, continue sizeable share-buy-backs without compromising balance-sheet stability.

A snapshot of 2024 performance

*Data as of 30 Jul 2025

1H 2025 operating update

DBS booked record top-line revenue despite rate headwinds: fee income and treasury-customer sales more than offset a modest NIM squeeze. Asset quality improved (NPL 1.0%), and surplus capital funded both the capital-return dividend and the ongoing S$3 bn buy-back plan.

OCBC delivered resilient results even as NIM compressed 25 bp; double-digit fee growth and a step-up in trading income held total revenue steady. A 41¢ interim plus the pre-announced specials keep the 60% full-year payout policy on track, while CET1 at 17% remains one of the sector’s strongest.

UOB saw a soft patch in NIM and trading, pulling 1H net profit down 3%. Fee lines grew double-digits, and disciplined costs nudged the cost-income ratio to 43.5%. Management paid the first 85¢ interim and confirmed the second tranche of its 50¢ special; CET1 stays a comfortable 15.5%.

Share-price total return

*Source: Google Finance as of 7 August 2025

• DBS is the clear long-term outperformer. A 166% five-year total return—driven by top-quartile ROE, progressive dividends and multiple expansion—means every S$1 invested in mid-2020 is now worth roughly S$2.66.
• OCBC sits in the middle of the pack. Its diversified fee engine and sector-highest CET1 ratio translate into a 96% five-year gain, while the recent two-year surge in wealth-management flows underpins a 66% three-year return.
• UOB has lagged slightly on a relative basis, with an 82% five-year and 53% three-year return, yet the bank still outpaces the STI’s equivalent 66% and 45% totals. Momentum could improve as Citi ASEAN integration synergies filter into earnings.

Across all three horizons the big-three banks have beaten Singapore’s broad-market index, validating their role as foundational, dividend-rich core holdings for investors seeking a blend of income and capital appreciation.

DBS Group Holdings – from development bank to digital powerhouse

Founded in 1968 to finance Singapore’s industrialisation, DBS has evolved into Southeast Asia’s largest bank by assets. The 2024 results tell a story of scale and technology: total income reached S$22.3 billion while net profit climbed 11% to a record S$11.41 billion. Return on equity held at 18%, one of the highest among developed-market lenders.

Digitalisation remains the strategic anchor. More than 1,500 AI models run across 370 use cases, generating insights that lifted wealth-management fee income 45% last year. Management raised the quarterly ordinary dividend to 60¢ and, because surplus capital now exceeds regulatory needs, introduced a capital-return dividend of 15¢ per quarter for 2025 through 2027. A separate S$3 billion share-buy-back programme began in November 2024.

CET1 closed the year at 17.0%, leaving a 7-percentage-point buffer over MAS requirements even after the fresh capital commitments. Asset quality stayed robust with a non-performing loan ratio of 1.1%.

OCBC Bank – diversified earnings anchored by insurance

OCBC’s story starts in 1932, when three local banks merged during the Great Depression. Today it is the region’s most diversified financial-services house, with banking, wealth and insurance under one roof. In 2024 the group delivered an 8% profit increase to S$7.59 billion, its third consecutive record. Total income topped S$14 billion for the first time, helped by double-digit growth in wealth fees and a 53% jump in trading income.

Great Eastern, the 116-year-old insurer in which OCBC now owns a 93.7% stake, contributed meaningfully to non-interest income and bolsters future fee growth. Board policy targets a 50% ordinary payout; in February the bank unveiled a two-year S$2.5 billion capital-return plan combining special dividends equal to 10% of net profit and opportunistic share buy-backs. If executed in full, the payout ratio remains 60%. CET1 stood at 17.1% on 31 December, the strongest among the trio.

United Overseas Bank – ASEAN franchise with anniversary cash bonus

Founded in 1935 as United Chinese Bank, UOB has grown into a pan-ASEAN retail and wholesale franchise spanning 19 markets. Integration of Citi’s consumer businesses in Thailand, Malaysia, Vietnam and Indonesia is now visible in stronger card spend and wealth flows. Net profit reached S$6.05 billion in 2024, up 6% year-on-year.

To mark its 90th anniversary, UOB announced a S$3 billion capital-distribution package, including a special dividend of 50¢ per share spread over 2025 and a S$2 billion buy-back programme. CET1 settled at 15.5% even after absorbing these planned outflows, reflecting steady organic capital generation and conservative provisioning—non-performing loans were 1.5%.

What keeps dividends safe?

Most global regulators demand higher capital buffers after the 2008 crisis. Singapore imposes an additional 2-percentage-point systemic charge on its three domestic systemically important banks. Even so, DBS, OCBC and UOB each finish 2024 at least 5 full percentage points above the required CET1 threshold. These cushions lower the probability that boards will need to trim ordinary dividends during a slump.

Valuation and market positioning

Equity markets rewarded the sector’s earnings run-up. DBS trades near 2× book value, a premium backed by its 18% ROE and digital leadership. OCBC and UOB hover just above 1.2× book, suggesting room for multiple expansion if they close the ROE gap or accelerate buy-backs.

Share-price performance diverged in 2025’s opening months: DBS topped S$50 before retreating on softer margin guidance, while UOB touched a record S$39 after unveiling its anniversary package, and OCBC drifted sideways awaiting clarity on China’s growth outlook.

Looking ahead

Net-interest margins. Consensus expects the US Federal Reserve to cut rates 3 or 4 times between November 2025 and mid-2026. Management guidance from all three banks implies a 10-basis-point margin compression scenario, modest relative to the 80-basis-point expansion enjoyed since early 2022.

Fee momentum. Wealth-management, cards and treasury client flows—areas that expanded 20%+ in 2024—should partly offset softer NIMs. DBS, for instance, added S$21 billion in net-new money, lifting assets under management to S$426 billion.

Credit quality. Non-performing loan ratios remain near historic lows. Stress tests published by MAS in December 2024 show that even in a severe global recession scenario, sector-wide CET1 would stay above capital floors.

Capital deployment. Share-buy-backs gain prominence: DBS has S$3 billion authorised, OCBC up to S$2.5 billion over 2 years and UOB S$2 billion. Buy-backs help lift earnings per share and support valuation multiples.

How to invest in DBS, OCBC, and UOB shares

Practical considerations for investors

Investors can own these banks directly through a CDP-linked trading account or via low-cost custody brokers. Orders settle two business days after the trade date, and dividends credit automatically to the cash ledger or CPF/SRS if the shares are held under those schemes. For a hands-off approach, Regular Savings Plans like POSB Invest-Saver or FSMOne enable monthly dollar-cost-averaging into the three tickers. Those seeking broader diversification can look at the Nikko AM STI ETF (SGX :G3B) or SPDR STI ETF (SGX :ES3), both of which allocate around forty per cent to DBS, OCBC and UOB.

Frequently asked questions

How often do DBS, OCBC and UOB pay dividends?

All three distribute cash four times a year, declaring final amounts with results in February and announcing interim payments after each subsequent quarter.

Are their dividends taxed?

Singapore exempts locally sourced dividends from withholding tax for individual investors, so shareholders receive the full declared amount.

Can I buy these shares with CPF-OA or SRS funds?

Yes. The three tickers are approved under both the CPF Investment Scheme and the Supplementary Retirement Scheme.

What happens if the Federal Reserve cuts rates faster than expected?

Net-interest margins would compress more quickly, but managements estimate that every ten-basis-point drop in NIM reduces group profit by roughly two to three per cent. Fee and trading income, plus excess capital, provide partial offsets.

How do I track share-buy-back activity?

Daily buy-back notifications appear on SGXNet. You can also set e-mail alerts inside brokerage platforms by adding the tickers to a watchlist.

Is it better to own the banks directly or via an STI ETF?

Direct ownership delivers higher yield—approximately five to six per cent—whereas the STI ETF yields closer to four per cent but reduces single-stock volatility and includes twenty-seven other constituents.

Do high CET1 ratios guarantee dividends?

They lower the odds of a cut but do not override earnings trends or regulatory guidance. Investors should still review each quarterly report.

Closing thoughts

DBS, OCBC and UOB continue to anchor Singapore’s equity market, combining stable dividends with long-term growth across the region. Their strong capital positions, consistent profitability and shareholder-friendly policies make them core holdings for income-focused investors. While DBS commands a valuation premium for its digital leadership and higher ROE, OCBC and UOB offer attractive yields at more modest price-to-book multiples. Together, they provide a range of risk-reward profiles suited to different investment strategies. With earnings resilience, disciplined cost control and clear capital-return frameworks in place, these banks are well-positioned to navigate shifting interest-rate cycles and broader macro changes—making regular reviews of their results and capital moves essential for staying aligned with their evolving opportunities.