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Analysts cheer dividend cap lift for banks, with UOB and OCBC identified as top picks

Felicia Tan
Felicia Tan7/29/2021 12:30 PM GMT+08  • 3 min read
Analysts cheer dividend cap lift for banks, with UOB and OCBC identified as top picks
CGS-CIMB estimates banks to reinstate their FY2021 dividends closer to that of the dividends distributed in the FY2019.
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Analysts from CGS-CIMB Research and RHB Group Research have maintained their “overweight” calls on the Singapore banking sector after the Monetary Authority of Singapore (MAS) announced, on July 28, that it has lifted the restrictions on dividends on Singapore banks and finance companies.

The move comes as the banks have maintained strong capitalisation ratios. It also comes after the US Federal Reserve and European Central Bank ended their dividend restrictions in their respective territories in June and July.

To CGS-CIMB analysts Andrea Choong and Lim Siew Khee, the asset quality across Singapore banks have remained “well-contained” through the Covid-19 pandemic.

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