SINGAPORE: For the week ended April 5, 2019, the Straits Times Index (STI) gained 110 points or 3.4%, to end the week at 3322 points, with the three banks rallying 6.1%, as DBS gained 6.9%, OCBC gained 6.0% and UOB gained 5.3%.

Singapore’s three listed local banks, with a combined market capitalisation of S$163 billion consist of DBS Group Holding (DBS), Oversea-Chinese Banking Corporation (OCBC) and United Overseas Bank (UOB), Singapore Exchange (SGX) said.

Combined, the three banks reported total income (pre allowances, expenses & taxes) of S$32.0 billion for FY18, up 6.6% from S$30.0 billion in FY17.

Combined, the quarterly net interest income for the three banks has gradually grown in recent years and has been consistently above S$4.0 billion for each quarter since the end of 2014. Moreover, combined quarterly net interest income was above S$5.0 billion for each quarter in FY18. This has coincided with gradual increases of local interest rates as represented by the 1-month Swap Offer Rate (“SOR”) and 3-month Singapore Interbank Offered Rate (“SIBOR“).

As of the end of March 2019, the average indicative dividend yield of the three banks stood at 4.2%, which has since retraced to 4.0% with the strong gains of the banks in the April month-to-date.  At the end of March, the average yield of DBS, OCBC and UOB had ended each of the preceding six months above 4.0%. This was the lengthiest time in their recent trading history that the average dividend yield for the three banks had consistently held above 4.0% at month end.[the_ad id=”31605″]