SINGAPORE, Jan 23, 2026, 15:01 SGT — Regular session
- DBS shares rose about 1% in afternoon trading, mirroring gains in Singapore’s leading banks.
- Analysts are turning more bullish on UOB and OCBC, while DBS is seen as having limited upside.
- Focus shifts to next week’s policy signals and DBS’ full-year earnings report set for Feb. 9.
DBS Group Holdings Ltd shares edged up 1.15% on Friday, closing at S$58.75 on a delayed quote. The stock fluctuated between S$57.90 and S$58.83 throughout the session, fueled by renewed interest in Singapore bank stocks. 1
These changes matter because major banks dominate Singapore’s benchmark, often steering the whole market. Investors are watching interest rate trends closely, given their direct effect on bank profits through the net interest margin — the gap between what banks earn on loans and pay on deposits.
A sharp move into the sector has traders rethinking the pecking order among the three. The market’s focus isn’t solely on which banks benefit from high rates anymore; it’s shifted to who can defend fees, keep credit costs steady, and still produce cash returns.
Friday’s action was led by rivals UOB and OCBC. UOB jumped as much as 4.8%, with OCBC climbing up to 3.4%, pushing the Straits Times Index to fresh record levels, the Business Times reported. Jayden Vantarakis from Macquarie pointed to Singapore’s standing as a “safe-haven” pulling in wealth flows. Kathy Chan of Morningstar added that the banks—“especially UOB”—were “catching up” after trailing DBS. 2
Some analysts remain cautious despite DBS’s steady rise. Macquarie Capital assigned an “underperform” rating to the stock, setting a S$50 target price, the Straits Times reported. The firm highlighted “the least room for DBS to surprise” relative to estimates. It also pointed to risks tied to Hong Kong’s commercial property market and a dimmer sector earnings outlook in 2026. 3
DBS has flagged a capital-markets move that’s more likely to be noted than acted on by investors. The bank intends to redeem an A$300 million floating-rate subordinated note due 2031, with the redemption set for April 8, 2026, subject to approval from the Monetary Authority of Singapore. This was detailed in a notice reported by S&P Capital IQ. These subordinated notes rank below senior debt in a wind-down and typically count as regulatory capital. 4
Friday brought a shift in the macro outlook after fresh inflation data. Singapore’s core inflation rose 1.2% year-on-year in December. The Monetary Authority of Singapore plans to update its forecasts in the monetary policy statement due Jan. 29, a joint release from MAS and the trade ministry confirmed. 5
Global interest rates remain under the spotlight. The U.S. Federal Reserve’s meeting on Jan. 27-28 might shift the timeline for rate cuts, which could ripple through Asian bank stocks. 6
DBS investors are once again asking: just how quickly will margins tighten, and can fees from wealth management and transactions fill the gap? Credit provisions—reserves set aside for possible loan losses—are still in the spotlight, especially those tied to commercial real estate and exposures connected to China.
DBS plans to unveil its full-year 2025 earnings before the market opens on Monday, Feb. 9, per an SGX announcement. Investors are zeroing in on dividend guidance, margin forecasts, and any shifts in credit-cost assumptions. 7
