Tomorrow is the final day of the ‘earnings season’, where all the Singapore listed companies due to release their business updates or financial results for the period ended 31 December 2024 are required to do so by the end of the day. That said, I hope you’re satisfied with the ‘report cards’ posted by the companies you’ve invested in.

Personally, the latest results posted by companies I’ve investments in (you can check out my entire investment portfolio here) were well-within my expectations.

Among the 12 companies I’ve invested in are the 3 Singapore banks, namely DBS Group Holdings Limited (SGX: D05), United Overseas Bank Limited (SGX: U11), and Oversea-Chinese Banking Corporation Limited (SGX: O39). Despite the US Federal Reserve announcing a 1% cut in benchmark borrowing rates in the final quarter of the calendar year 2024, it still remains high (at 4.25% and 4.50% currently), and to a certain extent, this acts as a tailwind for the banks, particularly in helping their net interest income remaining robust.

All 3 Singapore banks have already released their financial results for the 4th quarter, and for the full year ended 31 December 2024 (i.e., FY2024), starting with DBS on 10 February, followed by UOB on 19 February, and finally OCBC on Wednesday (26 February). In case you’ve missed out my reviews on the banks’ results, you can check them out via the respective links below:

To recap, in the previous quarter, DBS had the strongest performance for 3Q and 9M FY2024, with OCBC being the ‘cheapest’ among the 3 in terms of valuations, while DBS is the ‘most expensive’ (you can read the comparison post in full here).

This time round, which of the 3 Singapore banks came out on top? Also, which of the 3 is currently the ‘cheapest’ and ‘most expensive’ in terms of their valuations (based on their current traded prices)?

Let us find out in this post:

Key Financial Figures (4Q FY2023 vs. 4Q FY2024)

In this section, I will be comparing the improvements/declines (in percentage terms) reported by the banks for their net interest income, net fee and commission income, other non-interest income, and net profit reported for the 4th quarter of the current financial year under review (i.e., FY2024) against that reported a year ago (i.e., the 4th quarter of FY2023):

Net Interest Income:

DBSUOBOCBC
Net Interest
Income		Up +8.6%

4Q FY2023:
S$3,434m

4Q FY2024:
S$3,728m		Up +2.0%

4Q FY2023:
S$2,404m

4Q FY2024:
S$2,451m		Down -0.3%

4Q FY2023:
S$2,462m

4Q FY2024:
S$2,455m

OCBC was the only one that saw its net interest margin inched down by 0.3%, while DBS and UOB saw a single-digit percentage increase. However, the former recorded the strongest improvement by +8.6%, aided by a 2 basis point increase in its net interest margin.

Net Fee & Commission Income:

DBSUOBOCBC
Net Fee &
Commission
Income		Up +11.6%

4Q FY2023:
S$867m

4Q FY2024:
S$968m		Down -0.4%

4Q FY2023:
S$569m

4Q FY2024:
S$567m		Up +12.4%

4Q FY2023:
S$460m

4Q FY2024:
S$517m

This time round, UOB was the only one that saw its net fee and commission income declined, from a dip in its loan/trade-related fees. While DBS and OCBC recorded year-on-year (y-o-y) growths, OCBC’s improvement (in percentage terms) edged out DBS’, where the +12.4% jump was due to higher wealth management, brokerage and fund management, and investment banking fees.

Other Non-Interest Income:

DBSUOBOCBC
Other Non-
Interest
Income		Up +14.6%

4Q FY2023:
S$706m

4Q FY2024:
S$809m		Up +1.1%

4Q FY2023:
S$438m

4Q FY2024:
S$443m		Up +26.5%

4Q FY2023:
S$351m

4Q FY2024:
S$444m

All 3 banks saw an improvement in their other non-interest income for the 4th quarter. However, OCBC is the clear winner here, with the strongest growth, by +26.5%, from an increase in trading income, along with a higher contribution from life and general insurance.

Net Profit:

DBSUOBOCBC
Net ProfitUp +11.2%

4Q FY2023:
S$2,269m

4Q FY2024:
S$2,522m		Up +8.6%

4Q FY2023:
S$1,403m

4Q FY2024:
S$1,523m		Up +4.0%

4Q FY2023:
S$1,622m

4Q FY2024:
S$1,687m

Once again, DBS, UOB, and OCBC concluded their 4th quarter with an improved net profit. However, DBS recorded the highest improvement among the 3, at +11.2%, followed by UOB (at +8.6%), and then OCBC (at +4.0%)

Key Financial Figures (FY2023 vs. FY2024)

For the 4th quarter, both DBS and OCBC had the strongest performance (for the former, it came out on top with the highest percentage growth in its net interest income, as well as in its net profit; for the former, it emerged the winner with the highest percentage growth in its net fee and commission income, as well as in its other non-interest income).

What about for the full year? Again, we are going to look at the 3 banks’ growth/decline in their net interest income, net fee and commission income, other non-interest income, as well as their net profit to find out:

DBSUOBOCBC
Net Interest
Income		Up +5.7%

FY2023:
S$13,642m

FY2024:
S$14,424m		Down -0.1%

FY2023:
S$9,679m

FY2024:
S$9,674m		Up +1.1%

FY2023:
S$9,675m

FY2024:
S$9,755m

Among the 3, only UOB saw a slight decline in its net interest income (due to a 0.6 percentage point dip in its net interest margin), while both DBS and OCBC saw improvements. However, DBS emerged the winner for having a stronger improvement (by +5.7%, contributed by a 4 basis point increase in its commercial book net interest margin) compared to OCBC’s (where it saw a +1.1% growth in its net interest income).

Net Fee & Commission Income:

DBSUOBOCBC
Net Fee &
Commission
Income		Up +23.2%

FY2023:
S$3,384m

FY2024:
S$4,168m		Up +7.2%

FY2023:
S$2,235m

FY2024:
S$2,395m		Up +9.2%

FY2023:
S$1,804m

FY2024:
S$1,970m

While all 3 banks saw their net fee and commission income recording y-o-y improvements, only DBS recorded a double-digit percentage jump to a new high of S$4,168 million, led by wealth management.

Other Non-Interest Income:

DBSUOBOCBC
Other Non-
Interest
Income		Up +17.5%

FY2023:
S$3,154m

FY2024:
S$3,705m		Up +10.3%

FY2023:
S$2,018m

FY2024:
S$2,225m		Up +33.5%

FY2023:
S$2,058m

FY2024:
S$2,748m

DBS, UOB, and OCBC saw their other non-interest income spiked by double-digit percentages. However, OCBC had the strongest growth (by +33.5%), driven by a record trading income, and higher insurance income.

Net Profit:

DBSUOBOCBC
Net ProfitUp +12.2%

FY2023:
S$10,062m

FY2024:
S$11,289m		Up +5.8%

FY2023:
S$5,711m

FY2024:
S$6,045m		Up +8.1%

FY2023:
S$7,165m

FY2024:
S$7,587m

All 3 banks concluded FY2024 with improvements in its net profit – particularly, DBS and OCBC’s net profit at S$11,289 million and S$7,587 million respectively are new highs for the banks. However, among the 2, the former emerged at the winner with a stronger percentage growth (at +12.2%, compared to OCBC’s +8.1%).

Key Financial Ratios (3Q FY2024 vs. 4Q FY2024)

In terms of financial performance, DBS is the winner for having the strongest growth in terms of its performance for both the 4th quarter, as well as for FY2024.

Next, we move on to their key financial ratios (particularly, I will be looking at their net interest margin, return on equity, and non-performing loans ratio), where I will be comparing the statistics reported for the current quarter under review (i.e., 4Q FY2024 ended 31 December 2024) against that reported in the previous quarter 3 months ago (i.e., 3Q FY2024 ended 30 September 2024) to find out which had the strongest growth/smallest decline:

Net Interest Margin:

DBSUOBOCBC
Net Interest
Margin		Up +0.4pp

3Q FY2024:
2.11%

4Q FY2024:
2.15%		Down -0.5pp

3Q FY2024:
2.05%

4Q FY2024:
2.00%		Down -0.3pp

3Q FY2024:
2.18%

4Q FY2024:
2.15%

DBS is the only one out of the 3 that saw its net interest margin inch up by another 0.4pp from the previous quarter. Not only that, it also has the joint highest net interest margin with OCBC as at the end of 4Q FY2024, at 2.15%. Hence, DBS is the winner here.

Return on Equity:

DBSUOBOCBC
Return on
Equity		Down -2.9pp

3Q FY2024:
18.7%

4Q FY2024:
15.8%		Down -1.2pp

3Q FY2024:
14.3%

4Q FY2024:
13.1%**		Down -2.3pp

3Q FY2024:
14.1%

4Q FY2024:
11.8%
** – UOB did not specifically provide its Return on Equity for 4Q FY2024. I have computed it based on the statistics reported in 3Q and 2H FY2024.

While all 3 Singapore banks saw a decline in their return on equity, but UOB registered the smallest decline (at just -1.2pp). However, among the 3, DBS had the highest return on equity, at 15.8%, followed by UOB, at 13.1%, and then OCBC, at 11.8%.

Personally, I think its a “tie” between DBS and UOB here.

Non-Performing Loans Ratio:

DBSUOBOCBC
Non-Performing
Loans Ratio		Up +0.1pp

3Q FY2024:
1.0%

4Q FY2024:
1.1%		No Change

3Q FY2024:
1.5%

4Q FY2024:
1.5%		No Change

3Q FY2024:
0.9%

4Q FY2024:
0.9%

DBS was the only bank which saw its non-performing ratio inch up, as non-performing assets rose by 7.6%.

Among the 3, OCBC had the lowest non-performing loans ratio, at just 0.9%, and hence in my opinion, it is the winner.

Dividend Payout to Shareholders

DBS once again inched out in terms of growth in their key financial ratios for being the only bank that saw an increase in its net interest margin, as well as having the highest return on equity among the 3.

Moving on, let us take a look at the 3 banks’ dividend payout to shareholders – where I will be comparing their growth in terms of their payouts declared for the 2nd half of the year, as well as for the full year, to find out which of the 3 had the strongest growth:

2H FY2023 vs. 2H FY2024:

Only DBS pays out a quarterly dividend to the shareholders, while UOB and OCBC have a half-yearly payout frequency. So, for comparison purposes, I’m going to combine the bank’s payout for the 3rd and 4th quarter, and you can find them in the table below.

DBSUOBOCBC
Dividend Per
Share
(S$’cents)		Up +26.5%

2H FY2023:
102 cents

2H FY2024:
129 cents		Up +37.6%

2H FY2023:
85 cents

2H FY2024:
117 cents		Up +35.7%

2H FY2023:
42 cents

2H FY2024:
57 cents

Do note that for its dividend payout for 2H FY2024, there is a special dividend of 15 cents/share from DBS, 25 cents/share from UOB, and 16 cents/share from OCBC, due to the banks’ returning ‘excess capital’ to shareholders.

If you exclude the dividend payouts, DBS’ dividend payout would have grown by 11.8%, UOB by 8.2%, while OCBC saw a slight decline of 2.4%.

Hence, in terms of growth in dividend payout, for 2H FY2024, I would say it’s a tie between DBS (for having the highest growth excluding special dividends) and UOB (for having the highest growth including special dividends).

FY2023 vs. FY2024:

DBSUOBOCBC
Dividend Per
Share
(S$’cents)		Up +23.4%

FY2023:
192 cents

FY2024:
237 cents		Up +20.6%

FY2023:
170 cents

FY2024:
205 cents		Up +23.2%

FY2023:
82 cents

FY2024:
101 cents

Again, do note that the above is inclusive of special dividends declared by the 3 banks. Excluding that, DBS’ dividend payout would have grown by 15.6%, UOB by 5.9%, and OCBC by 3.7%.

In terms of growth of its dividend for the full year, DBS is the winner here, for having the strongest growth in its dividend payout with, as well as without special dividend.

Question: Between DBS, UOB, and OCBC, Which Bank Emerged on Top in Terms of Their Performances for 4Q & FY2024?

The honour this time round goes to DBS once again – for having the strongest growth in terms of its financial performance for the 4th quarter (it has the strongest growth in its net interest income and net profit), as well as for FY2024 (for having the highest improvement in its net interest income, net fee and commission income, and net profit).

At the same time, the bank also inched out among the 3 in terms of being the only one that managed to record a growth in its net interest margin, as well as having the highest return on equity.

Finally, in terms of dividend payouts to shareholders, it also recorded the strongest improvement (in percentage terms) with and without special dividends.

In case you’re wondering which bank comes in 2nd place, the answer is OCBC – for having the highest percentage growth in its net fee and commission income for the 4th quarter, other non-interest income for both the 4th quarter as well as for the full year, and at the same time, having the lowest non-performing loans ratio among the 3, at just 0.9%.

Which Bank is Currently the ‘Cheapest’ and ‘Most Expensive’?

Of course, if you look at the share prices of the 3 banks, it goes without saying that DBS is the most expensive, followed by UOB, and then OCBC.

But what about in terms of valuations? In the table below, you’ll find a comparison of the valuations of the 3 banks based on their share prices at market close yesterday (26 February):

DBSUOBOCBC
Share PriceS$46.67S$38.44S$17.21
P/E Ratio11.8110.7910.60
P/B Ratio1.931.281.37
Dividend Yield^^5.1%
(4.8%)		5.9%
(4.7%)		5.9%
(4.9%)
^^ – Do note that I’ve provided 2 yields, one with special dividends included, and one without (in brackets)

Looking at the above, once again, in terms of valuations, DBS is the ‘most expensive’ for having the highest P/E and P/B ratios. At the other end, OCBC is once again the ‘cheapest’ for having the lowest P/E ratio and the highest dividend yield.

Closing Thoughts

In my opinion, it is an extremely resilient set of results reported by DBS, in current CEO Piyush Gupta’s final year as the leader of Singapore’s largest bank (he will be retiring after the bank’s AGM on 28 March 2025, with Ms Tan Su Shan taking his place).

Also, no surprises there that in-line with such performances, it is the ‘most expensive’ among the 3 in terms of its current valuations.

As a shareholder of DBS, UOB, and OCBC since 2019-2020 period, I must say that I’m happy with their performances throughout the quarters (even during the lows of the Covid-19 pandemic, they have continued to produce a robust ‘report card’). Moving forward, even with economic uncertainties, I remain confident of the 3 banks’ management being able to navigate through and emerge stronger at the end of it, as well as further improving on their returns to us shareholders.

With that, I have come to the end of my comparison post on the results of DBS, UOB, and OCBC for the 4th quarter, as well as for the full year ended 31 December 2024. Do note that all the opinions you find within are purely for educational purposes only. They are not meant as any buy or sell calls for any of the 3 Singapore-listed banks. You are strongly encouraged to do your own due diligence before you make any investment decisions.

Disclaimer: At the time of writing, I am a shareholder of DBS, UOB, and OCBC.

Join Me 'Live' at REITs Symposium 2025 – 24 May | 3:15PM – 3:45PM @ Engagement Stage

REITs Symposium 2025 | Singapore's largest Real Estate Investment Trust Event of the Year | 24 May 2025 | Suntec Convention Centre Level 3, Summit 1 & 2 | 9am - 5pm

Amid escalating trade tensions and renewed market volatility triggered by the latest wave of tariff announcements, how should investors navigate the REITs space?

I'll be sharing my insights and strategies for staying resilient with REIT investments in these uncertain times during my presentation at the Engagement Stage — located right at the entrance of the event.

🎟️ Find out more about the event, and grab your tickets for just S$5 here...

Are You Worried about Not Having Enough Money for Retirement?

You're not alone. According to the OCBC Financial Wellness Index, only 62% of people in their 20s and 56% of people in their 30s are confident that they will have enough money to retire.

But there is still time to take action. One way to ensure that you have a comfortable retirement is to invest in real estate investment trusts (REITs).

In 'Building Your REIT-irement Portfolio' which I've authored, you will learn everything you need to know to build a successful REIT investment portfolio, including a list of 9 things to look at to determine whether a REIT is worthy of your investment, 1 simple method to help you maximise your returns from your REIT investment, 4 signs of 'red flags' to look out for and what you can do as a shareholder, and more!

Get Your Copy of building Your REIT-irement Portfolio Here

You can find out more about the book, and grab your copy (ebook or physical book) here...