Analysts remain 'overweight' on Singapore banking sector after record 1Q, OCBC and DBS top picks

Analysts from UOB Kay Hian and RHB Group Research see a bright outlook for Singapore’s banking sector for the rest of the year after 1QFY2021 ended March results saw the banks beating expectations.

UOB Kay Hian analyst Jonathan Koh notes that DBS Group Holdings and Overseas-Chinese Banking Corporation (OCBC) achieved record earnings of $2 billion and $1.5 billion respectively for the 1Q, while United Overseas Bank (UOB) posted earnings of $1 billion.

The strong performance was underpinned by stabilisation in net interest margin (NIM), growth in wealth management, strong net trading income and moderation in credit costs.

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