Singapore banks have all given investors plenty to cheer about, especially for shareholders of DBS Group Holdings Ltd (SGX: D05).
Over the last five years, shares in DBS, Oversea-Chinese Banking Corp Limited (SGX: O39), and United Overseas Bank Ltd (SGX: U11) have climbed strongly. However, the strongest performer of them all was Singapore’s largest bank; DBS.
DBS shares rose 34% in the past five years, versus a negative return for the Straits Times Index (SGX: ^STI). The strong share price growth is not surprising, given DBS’s net profit and dividend have increased the most among the banking trio.
From FY2014 to FY2018 (DBS has a 31 December year-end), earnings from DBS grew 8.4% per annum while its dividend per share climbed 19.9% per year.
DBS also ended FY2018 with the highest return on equity (ROE) among the banks. This metric shows us how effective a bank’s management is in maximising the profits earned on shareholders’ capital. DBS’s ROE stood at 12.1% while OCBC’s ROE was 11.5% and UOB’s came in at 11.3%.
If DBS can deliver the goods for the next five years (just like in the past five), then DBS shareholders will have even more reasons to rejoice. Source: Yahoo! Finance
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of DBS Group Holdings Ltd, Oversea-Chinese Banking Corp Limited, and United Overseas Bank Ltd. Motley Fool Singapore contributor Sudhan P owns shares in Oversea-Chinese Banking Corp Limited.
Motley Fool Singapore 2019