Which Bank Performed the Best? Singapore-Listed Banks Q3 Earnings Results Compared
$DBS Group Holdings (D05.SG)$, $UOB (U11.SG)$, and $OCBC Bank (O39.SG)$, the three major banks listed in Singapore, have all released their Q3 2023 earnings results as of November 10th. UOB was the first to release its report on October 26th, followed by DBS on November 6th, and OCBC on November 10th.
DBS and OCBC have reported strong double-digit year-on-year growth rates in net interest income, with increases of 16% and 17%, respectively. In comparison, UOB's net interest income grew by 9%. All three banks have also seen significant year-on-year growth in net interest margins, with DBS experiencing a particularly substantial rise from 1.90% in Q3 of fiscal 2022 to 2.19%.
Based on their Q3 net profits, OCBC and DBS recorded significant increases of up to 21% and 18%, respectively, while UOB experienced a decline of 1%.
OCBC Bank was the only one to report an improvement in its non-performing loan (NPL) ratio among the three banks. The bank's NPL ratio dropped from 1.2% in the same period last year to 1.0% in Q3 FY2023. Meanwhile, DBS maintained its NPL ratio at 1.2% year-on-year, while UOB's ratio increased slightly from 1.5% in Q3 of fiscal year 2022 to 1.6%.
Yeap Jun Rong, a market strategist at IG Asia, believes that improved market conditions and strong travel momentum could help maintain net fee income: “The strong year-on-year growth momentum that we have seen over the past year may be harder to sustain in 2024, given that the bulk of the interest rate upcycle is most likely behind us.”
Source: OCBC, DBS, UOB, the Straits Times, the Singaporean investor
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