- With the rise in trading volumes, capital markets have become more buoyant in 4Q24, and banks' trading income is expected to benefit further in FY25. Furthermore, the continued growth in fee income and a recovery in loan growth will more than offset the declining NIMs.
- The banks’ dividend yield of ~6.4% is attractive as capital return initiatives begin in FY25 and share buybacks will improve ROE and EPS.
Capital Returns Initiatives:
DBS (SGX:D05) -
- - Read this at SGinvestors.io -
- a Capital Return dividend of S$0.15 per quarter for FY25e, and
- a S$3bn share buyback programme (no details provided on the timeline yet).
- - Read this at SGinvestors.io -
OCBC (SGX:O39) -
- Read more at SGinvestors.io.
