This week, both DBS and UOB held their AGMs on 25 April and 26 April respectively. OCBC will be having their AGM this coming Monday, 29 April 2019.
Globally, Singapore banks are amongst the safest banks in the world. In a World’s Safest Banks 2018 – The Global Top 50 ranked by Global Finance, the three major Singapore banks DBS, OCBC and UOB were named in the top 20. Notably, DBS has made it to this list of top 50 safest banks for the past 10 years since 2009.
While these banks are amongst the safest banks in the world, should there be a situation where the bank fails, the Singapore Deposit Insurance Corporation (SDIC) is present, insuring up to $75,000 of your insured deposits.
Bank branches for all three listed banks, DBS, OCBC and UOB can be found all over the island to cater to the Singapore population. With a combined market cap of $165 billion, DBS, OCBC and UOB account for close to 30% of the Straits Times Index (STI). This week, the STI opened at 3358.540 and closed lower at 3356.950.
In this week’s edition of 4 Stocks This Week, we look at the three listed banks in Singapore as well as Hong Leong Finance, a company that also offers financial products and services.
DBS Group Holdings (SGX: D05)
DBS is the largest bank by market capitalisation. With a market cap of $70.3 billion, it is significantly larger than both OCBC and UOB. A leading bank in Asia, DBS has 9 million customers in 18 markets. Outside of Singapore, DBS has growing presence in Southeast Asia, Greater China and South Asia
DBS has been giving investors steady dividends that have increased over the years. On top of the interim dividend of $0.60 per share, DBS will be paying a final dividend of $0.60 per share for 2018. For investors, total dividend per share (DPS) received in 2018 would total $1.20 per share.
DBS started the year at $23.70, it has since climbed 15.6% to close at $27.410 last Friday 26 April 2019.
Oversea-Chinese Banking Corporation (SGX: O39)
OCBC is the second largest bank in Singapore by market cap. OCBC has a market cap of $49.5 billion.
In 2018, OCBC launched OCBC RoboInvest, making it the first bank in Singapore to offer robo advisory services. OCBC has also recently increased its focus on youths, opening a new Frank by OCBC Store at National University of Singapore (NUS) University Town.
OCBC will be paying a final dividend of $0.23 per share for 2018 on top of the interim dividend of $0.20 per share. Total dividend per share (DPS) received in 2018 would total $0.43 per share.
OCBC started the year at $11.26, it has since climbed 4.88% to close at $11.81 last Friday 26 April 2019.
United Overseas Bank (SGX: U11)
As the third largest bank in Singapore behind DBS and OCBC, UOB has a market cap of $45.3 billion. Recently, UOB launched a new credit card co-branded with Krisflyer targeting frequent travelers in Singapore. Uniquely, the Krisflyer UOB Credit Card can be combined with a savings account to earn miles.
For FY2018, the total dividend paid out by UOB increased 20% from 2017 to $1.20 per share. UOB started the year at $24.68, it has since climbed 10.5% to close at $27.28 last Friday 26 April 2019.
Hong Leong Finance (SGX: S41)
Hong Leong Finance is the financial services arm of the Hong Leong Group Singapore. With 28 branches and 11 SME Centres across Singapore, Hong Leong Finance is Singapore’s largest finance company.
Hong Leong Finance’s provides a wide range of financial products and services for consumers, including corporate and consumer loans, government assistance programmes for SMEs as well as corporate finance and advisory services.
In 2018, Hong Leong Finance had a dividend yield of 5%, giving out annual dividends totaling $0.14 per share. Hong Leong Finance has been steadily climbing since the start of 2019 where it opened at $2.580.
Last Friday, Hong Leong Finance closed at $2.800, growing 8.53% since the start of 2019.
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4 Stocks This Week is not a recommendation from us to buy or sell any of these stocks. For investors who are keen to find out more, you should continue researching about them before making your investment decisions.