Singapore, January 12, 2026, 15:03 SGT — Regular session
- UOB shares rose about 0.4% in afternoon trade, keeping pace with Singapore bank peers
- Dividend yield focus returns as investors weigh how fast rates may ease in 2026
- Traders watch U.S. December CPI on Jan 13 and UOB’s earnings date in February
Shares of United Overseas Bank Limited (U11) rose 0.14 Singapore dollars, or about 0.4%, to S$36.16 in Monday afternoon trade. DBS Group and OCBC were also firmer, up 0.5% and 1.1% respectively, Google Finance data showed. (Google)
The move comes as Singapore bank stocks start 2026 on the front foot, with investors leaning back into dividend names as interest rates are expected to ease. Morningstar’s Lorraine Tan said UOB “stands out as the most attractive pick” at current valuations, with a projected dividend yield of 5.8% based on its Jan. 5 close, The Straits Times reported. (The Straits Times)
Rates sit at the centre of the trade. UOB senior foreign exchange strategist Peter Chia said Singapore’s benchmark Sora — the Singapore Overnight Rate Average — could bottom around 1% before drifting higher later in the year, adding: “We are not so far away from the low,” according to The Straits Times. (The Straits Times)
Investors are also tracking UOB’s push in Vietnam, one of its key regional markets. Vietnam’s Standing Deputy Prime Minister Nguyen Hoa Binh visited UOB on Jan. 11, and CEO Wee Ee Cheong said the bank’s local platform “enables us to support Vietnamese enterprises as they expand regionally,” The Edge Singapore reported. (The Edge Singapore)
UOB’s economists have turned more upbeat on the country’s outlook, raising Vietnam’s 2026 GDP growth forecast to 7.5% from 7.0%. Suan Teck Kin, an executive director in UOB’s Global Economics and Markets Research, said Vietnam “enters 2026 on a strong footing,” while flagging downside risks tied to exports and U.S. tariff uncertainty, Vietnam News reported. (Vietnamnews)
For bank stocks, falling rates cut both ways. Lower benchmarks can squeeze loan margins, but they can also ease funding costs and support credit demand if growth holds up.
But the margin risk has not gone away. UOB previously warned that declining rates could pressure profitability, and flagged a lower 2026 net interest margin — a key gauge of the spread between what a bank earns on loans and pays on funding — in its most recent quarterly update, Reuters reported. (Reuters)
The first near-term test for rate expectations is U.S. December consumer price data due on Tuesday, Jan. 13, at 8:30 a.m. Eastern time, according to the U.S. Bureau of Labor Statistics schedule. (Bureau of Labor Statistics)
UOB’s next earnings report is due on Feb. 19, according to Investing.com, with investors likely to focus on dividend guidance, net interest margin trends and any read-through from its ASEAN growth markets. (Investing)
