It's raining dividends at OCBC and UOB

OCBC and UOB raised their dividends to 38 cents and 80 cents, respectively.

In line with DBS' increase in dividends, OCBC and UOB also raised their annual dividend run-rate.

Jefferies Singapore said OCBC raised its dividend run rate from 36 cents to 38 cents, whilst UOB increased it from 70 cents to 80 cents.

In addition, UOB also declared a special dividend of 20 cents.

Whilst OCBC had the smallest growth in dividend among the three banks, Jefferies said it is still in the process of optimising internal models for OCBC Wing Hang Bank and Bank of Singapore.

Jefferies equity analyst Krisha Guha added, "Capital ratios are likely to trend higher once the exercise is done. Currently, UOB has the highest CET1 ratio at 14.7% (OCBC 13.1%, DBS 13.9%) on a fully loaded basis, which leaves room for organic or inorganic growth."