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

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.