Singapore, Jan 16, 2026, 15:08 SGT — Regular session
- DBS shares climbed roughly 0.4% in afternoon trading, reaching a new 52-week peak
- Singapore bank stocks have attracted strong inflows, driven by their dividend yields, while investors keep an eye on margins amid changing rates
- DBS will report its full-year 2025 results ahead of the market open on Feb. 9
DBS Group Holdings Ltd (DBSM.SI) climbed roughly 0.4% to S$59.10 by Friday afternoon, having hit a 52-week peak at S$59.25 earlier in the session. The stock fluctuated between S$58.79 and S$59.25 during the day. (Investing)
The move comes after DBS closed at a record S$58.89 on Thursday, with the Singapore bank trio holding strong near the top of the local market, the Straits Times reported. Jonathan Koh, director of research at UOB Kay Hian, said, “Banks provide resilient earnings with growth in non-interest income, including wealth management, offsetting negative impact from net interest margin (NIM) compression.” (NIM refers to the gap between what banks earn on loans and pay on deposits.) Morningstar’s Lorraine Tan told the paper the banks’ roughly 5% dividend yields remain attractive as interest rates are expected to decline. (Straitstimes)
Why it matters now: banks move the market. Since the sector holds sway over the Straits Times Index, a steady rise in DBS alone can keep the benchmark afloat on an otherwise quiet macro day.
DBS will release its full-year 2025 results before the market opens on Monday, Feb. 9. Investors are zeroing in on dividends, loan growth, and credit costs — the reserves banks hold against potential loan losses. (Sgx)
This week’s backdrop flipped as traders trimmed bets on near-term U.S. rate cuts following stronger-than-expected U.S. data, sending the dollar higher and yields climbing, according to a Reuters market wrap. For Singapore banks, the trajectory of interest rates remains the key driver behind margin forecasts. (Reuters)
DBS has pushed more aggressively into fee-driven areas, especially wealth management, to balance out fluctuations in net interest income as rates shift. Investors will be watching closely to see how that trade-off plays out when the bank releases its results.
The trade is crowded, though. The stock’s perched near the top of its 52-week range, and any cautious signals on 2026 margins, slower-than-expected fee growth, or a spike in provisions might spark a swift sell-off.
Investors will keep an eye on how other players in the sector discuss deposit pricing and asset quality. These pressures usually emerge first beyond the market leader and then ripple through investor sentiment.
