Singapore banks post robust net profit results

All three major banks reported net profits of more than $2b for the first six months of 2021.

The top listed Singapore banks all posted net profit results of $2b and above for the first half of 2021.

Amongst the three, UOB posted the lowest results with a net profit of $2b, 29% higher than last year’s figures.

OCBC posted the highest growth, at 86% year-on-year, translating to $2.66b.

DBS had a record-breaking first half, with a net profit of $3.71b, 54% higher than last year.

“Overall, the three banks beat estimates accompanied by improvement in guidance and restoration of dividend back to pre-pandemic level. While there were few question marks around capital/distribution policy (OCBC) and asset quality outlook (UOB), the results paint a picture of steady economic recovery albeit with ample fiscal and monetary support,” said Jefferies Equity Research on its report on DBS.

In brokerage reports on both UOB and OCBC, Maybank Kim Eng flagged ASEAN as a region with bad loans as the pandemic continues its onslaught.