Singapore has established itself as a leading financial hub, with strong capabilities across banking, finance, investment, insurance, and Fintech. At the heart of this ecosystem are our three local banks—DBS (SGX: D05), UOB (SGX: U11), and OCBC (SGX: O39)—which are also the largest banks in Southeast Asia. These institutions are frequently recognised among the world’s safest, strongest and most innovative banks.
Beyond strengthening Singapore’s position as a financial centre, DBS, UOB, and OCBC are also among the largest companies listed on the Singapore Exchange (SGX). Collectively, they make up over 50% of the Straits Times Index (STI), Singapore’s benchmark stock index.
| Banks | Market Cap |
| DBS (SGX: D05) | $116.1 billion |
| OCBC (SGX: O39) | $71.9 billion |
| UOB (SGX: U11) | $58.2 billion |
| Total | $246.2 billion |
(As of 18 April 2025)
This means that when we invest in the STI today, more than half of our portfolio would be concentrated in just the three local banks. These banks are also well-regarded for offering relatively stable and attractive dividends to investors.
An increase in market interest rates in 2022 and 2023 has largely worked in favour of the local banks, boosting their net interest margins. Higher interest rates allow banks to earn more from loans and other forms of financing. While they do pay more on customer deposits, the increase in lending income typically outweighs the additional interest expenses, contributing to stronger profitability. In 2024, local banks continue seeing strong growth and record profits.
| Banks | Share Price (as of 18 April 2025) | Dividends Per Share In FY2024 | Dividend Yield Based On Current Share Price |
| DBS (SGX: D05) | $40.83 | FY2024: $2.22 1Q2024: $0.54 2Q2024: $0.54 3Q2024: $0.54 4Q2024: $0.60 | 5.4% |
| OCBC (SGX: O39) | $15.98 | FY2024: $1.01 1H2024: $0.44 2H2024: $0.41 + $0.16 (Special dividend) = $0.57 | 6.3% (inclusive of special dividend) or 5.3% (excluding special dividend) |
| UOB (SGX: U11) | $34.80 | FY2024: $2.30 1H2024: $0.88 + $0.25 (Special dividend) = $1.13 2H2024: $0.92 + $0.25 (Special dividend) = $1.17 | 6.6%(inclusive of special dividend) or 5.1% (excluding special dividend) |
The information is accurate as of April 18, 2025. DBS pays quarterly dividends, while OCBC & UOB pay dividends semi-annually.
Read Also: Complete Guide To Investing In The Straits Times Index (STI) ETFs In Singapore
DBS (SGX: D05)
DBS (SGX: D05) is the largest bank in Singapore and Southeast Asia. It operates in 18 markets, including Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Myanmar, Philippines, Taiwan, Thailand, UEA, UK, USA and Vietnam.
Currently, DBS is trading at $40.83, giving it a market capitalisation of about $116.1 billion.
In FY2024, DBS achieved a record net profit of $11.4 billion and a return on equity of 18.0%. Total income grew 10% to $22.3 billion, supported by commercial book net interest margin expansion, fee income surpassing SGD 4 billion for the first time, record-high treasury customer sales and a rebound in markets trading income.
On 28 March 2025, long-time DBS CEO Piyush Gupta stepped down from his position. He is replaced by Tan Su Shan, who will also be DBS’ first female CEO.
OCBC (SGX: O39)
OCBC also has a strong regional and global presence in Australia, China, Hong Kong, Indonesia, Japan, Myanmar, South Korea, Taiwan, Thailand, UK, USA and Vietnam.
Currently trading at $15.98, OCBC has a market capitalisation of $71.9 billion.
For FY2024, OCBC reported that its net profit grew 8% to a new high of $7.59 billion. This was driven by robust income growth across its three key businesses (banking, wealth management, insurance) and lower allowances.
Thanks to its sustained earnings growth and strong capital position, OCBC will return $2.5 billion to shareholders over FY2024 and FY2025 through special dividends and share buybacks. Special dividends will make up 10% of net profit, with the rest via buybacks, subject to market conditions and approvals.
During the past year, OCBC also increased its stake in Great Eastern to 93.72%
UOB (SGX: U11)
UOB (SGX: U11) also operates regionally and in major global financial centres, including Australia, Brunei, Canada, China, France, Hong Kong, India, Indonesia, Japan, Malaysia, Myanmar, Philippines, South Korea, Taiwan, Thailand, UK, USA and Vietnam.
Currently trading at $34.80, UOB has a market capitalisation of about $58.2 billion.
For FY2024, UOB reported a record net profit of $6.0 billion, a 6% increase from the previous year. This was driven by strong net fee income and trading and investment income.
As part of its capital distribution strategy, UOB has confirmed a S$3 billion package over the next three years, comprising special dividends and share buybacks. To mark its 90th anniversary, a special dividend of 50 cents per share—totalling S$0.8 billion—has been declared for 2025. A new S$2 billion share buyback programme has also been introduced.
Read Also: History Of Banking In Singapore: How We Ended Up With The 3 “Big” Banks For Consumers
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.
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