- Our top pick is OCBC (SGX:O39) for its focus on trade and investment flows within ASEAN and a defensively low 2025F P/B of 1.33x, followed by DBS (SGX:D05) for its 2025 yield of 5.6%.
- - Read this at SGinvestors.io -
Safe haven flows caused NIM compression.
- 3M compounded SORA was depressed and eased a massive 60bp q-o-q to 1.46% in 3Q25 due to inflows of liquidity seeking safe haven in Singapore. DBS, OCBC and UOB saw similar magnitude of NIM compression by 9bp, 8bp and 9bp q-o-q respectively in 3Q25 to 1.96%, 1.84% and 1.82%.
- On a y-o-y basis, OCBC and UOB’s NIM compressions were more severe at 34bp and 23bp respectively. Thus, OCBC and UOB suffered a more significant decline in net interest income at 8.5% and 7.9% y-o-y in 3Q25 (DBS: -1.9% y-o-y).
Safe haven flows inflated deposit growth.
- - Read this at SGinvestors.io -
- Currently, UOB has the highest CASA ratio at 57%, compared to 53% for DBS and 50% for OCBC.
Supercharged growth from wealth management.
- Read more at SGinvestors.io.
