UOB, DBS and OCBC surpass 5.5% global bank index with 14.2% average total return

They have a combined market cap of $126.3b.

SGX lists three local banks namely DBS Group Holdings (DBS), Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (UOB).

According to the Global Industry Classification Standard (GICS), these three stocks are categorised as diversified banks which are large, geographically diverse banks with a national footprint whose revenues are derived primarily from conventional banking operations, have significant business activity in retail banking and small and medium corporate lending, and provide a diverse range of financial services. 

These three stocks are commonly recognised as blue chips and have a combined market capitalisation of S$126.3 billion. According to the Securities Investors Association (Singapore) (SIAS), blue chip stocks are well-established companies with stable cash flows and strong management teams for example in Singapore, examples of blue chip stocks include local banks and telecommunication companies which have demonstrated strong profitability throughout the years.

DBS is the largest capitalised stock followed by OCBC and UOB. In the month of November, the three stocks generated an average 4.8% gain taking the average 2014 year-to-date total returns to14.2%. In addition, DBS generated the highest month to date total return of 6.7% and 2014 year to date total return of 19.2%.