All 3 Singapore-listed banks have since released their business update for the 1st quarter of FY2025 (ended 31 March 2025), and you can read about my reviews via the respective links below:
DBS (SGX: D05): https://www.thesingaporeaninvestor.sg/2025/05/08/dbs-group-holdings-limiteds-1q-fy2025-business-update-what-investors-need-to-know/
UOB (SGX: U11): https://www.thesingaporeaninvestor.sg/2025/05/07/united-overseas-bank-limiteds-1q-fy2025-business-update-what-you-need-to-know/
Just like in the previous quarters, in this post, I’ll be putting their key financial figures and ratios side-by-side to find out which of the 3 recorded the strongest improvement this time round, and also which is currently the ‘cheapest’ and ‘most expensive’ based on their current valuations:
Key Financial Figures (1Q FY2024 vs. 1Q FY2025)
In this section, you’ll find a comparison of the 3 banks’ net interest income, net fee & commission income, other non-interest income, and net profit reported for 1Q FY2025 compared against that reported a year ago:
Net Interest Income:
| DBS | UOB | OCBC | |
| Net Interest Income | Up +5.0% 1Q FY2024: S$3,505m 1Q FY2025: S$3,681m | Up +2.0% 1Q FY2024: S$2,362m 1Q FY2025: S$2,409m | Down -3.8% 1Q FY2024: S$2,437m 1Q FY2025: S$2,345m |
Apart from OCBC, which saw its net interest income suffering a 3.8% year-on-year dip as a result of a 23 basis point decline in its net interest margin, both DBS and UOB recorded a low single-digit percentage improvement.
However, between the 2, DBS has a slightly better improvement, at 5.0%, compared to 2.0% increase for UOB.
Net Fee & Commission Income:
| DBS | UOB | OCBC | |
| Net Fee & Commission Income | Up +22.2% 1Q FY2024: S$1,043m 1Q FY2025: S$1,275m | Up +19.7% 1Q FY2024: S$580m 1Q FY2025: S$694m | Up +14.0% 1Q FY2024: S$479m 1Q FY2025: S$546m |
While all 3 of them saw growths in their net fee and commission income, the clear winner here is DBS, where it recorded a 22.2% year-on-year improvement – particularly, it was also a new high for the bank, and it was aided by new highs achieved for its wealth management and loan-related fees.
Other Non-Interest Income:
| DBS | UOB | OCBC | |
| Other Non- Interest Income | Down -5.9% 1Q FY2024: S$1,009m 1Q FY2025: S$949m | Down -4.6% 1Q FY2024: S$581m 1Q FY2025: S$554m | Up +7.6% 1Q FY2024: S$710m 1Q FY2025: S$764m |
For the banks’ other non-interest income, only OCBC registered a year-on-year improvement (at 7.6%), which can be attributed to higher trading and insurance income. Hence, it is the ‘winner’ in this category.
Net Profit:
| DBS | UOB | OCBC | |
| Net Profit | Down -1.8% 1Q FY2024: S$2,951m 1Q FY2025: S$2,897m | Up +0.2% 1Q FY2024: S$1,487m 1Q FY2025: S$1,490m | Down -5.0% 1Q FY2024: S$1,982m 1Q FY2025: S$1,883m |
In terms of the 3 banks’ net profit for 1Q FY2025 compared against a year ago, only UOB managed to record a small increase (by +0.2%), while DBS and OCBC saw a low single-digit percentage decline (for the former, it was due to higher tax expenses from the implementation of the 15% global minimum tax, and for the latter, it was due to an increase in allowances, as well as in amortisation, tax, and non-controlling interest).
Key Financial Ratios (4Q FY2024 vs. 1Q FY2025)
Moving on, let us have a look at the 3 key financial figures (i.e., net interest margin, return on equity, and non-performing loans ratio) reported by the 3 banks for the current quarter under review (i.e., 1Q FY2025 ended 31 March 2025) against that reported in the previous quarter 3 months ago (i.e., 4Q FY2024 ended 31 December 2024) to find out which bank recorded the strongest growth:
Net Interest Margin:
| DBS | UOB | OCBC | |
| Net Interest Margin | Down -0.03pp 4Q FY2024: 2.15% 1Q FY2025: 2.12% | No Change 4Q FY2024: 2.00% 1Q FY2025: 2.00% | Down -0.11pp 4Q FY2024: 2.15% 1Q FY2025: 2.04% |
UOB was the only bank which saw its net interest margin remaining stable at 2.00% compared to the previous quarter, while the other 2 banks saw declines.
Return on Equity:
| DBS | UOB | OCBC | |
| Return on Equity | Up +1.5pp 4Q FY2024: 15.8% 1Q FY2025: 17.3% | Down -0.8pp 4Q FY2024: 13.1% 1Q FY2025: 12.3% | Up +1.2pp 4Q FY2024: 11.8% 1Q FY2025: 13.0% |
Only UOB saw a slight decline in its return on equity, while both DBS and OCBC saw improvements. However, between the 2 banks, DBS edged out for not only a higher growth (in percentage points), but its return on equity is also the highest among the 3 banks (at 17.3%).
Non-Performing Loans Ratio:
| DBS | UOB | OCBC | |
| Non-Performing Loans Ratio | No Change 4Q FY2024: 1.1% 1Q FY2025: 1.1% | Up +0.1pp 4Q FY2024: 1.5% 1Q FY2025: 1.6% | No Change 4Q FY2024: 0.9% 1Q FY2025: 0.9% |
For non-performing loans ratio, only UOB saw a slight increase, and at the same time, at 1.6%, its ratio is also the highest among the 3.
Between DBS and OCBC, the latter edged out for having a lower percentage (at just 0.9%, compared to 1.1% for DBS).
Question: Among the 3 Singapore-Listed Banks (DBS, UOB, and OCBC), Which Bank Delivered the Strongest Set of 1Q FY2025 Results?
This time round, DBS edged out slightly for having the strongest improvement in terms of its net interest income, as well as in its net fee & commission income. It also had the highest return on equity among the 3.
Second place is tied between UOB and OCBC – for the former, it had the strongest growth in terms of its net profit, along with its net interest margin being the only one among the 3 which remained stable (while the other 2 banks saw declines); for the latter, its improvements in other non-interest income was the strongest, along with its non-performing loans ratio being the lowest among the 3.
Which Bank is Currently the ‘Cheapest’ and ‘Most Expensive’?
To best answer this question, in the table below, you’ll find the current valuations of the 3 banks based on their closing prices last Friday (09 May), as follows:
| DBS | UOB | OCBC | |
| Share Price | S$43.82 | S$34.83 | S$16.23 |
| P/E Ratio | 10.94 | 9.76 | 9.68 |
| P/B Ratio | 1.78 | 1.16 | 1.23 |
| Dividend Yield^^ | 5.07% | 5.89% | 6.22% |
No surprises there – similar to the previous quarters when I compared the valuations of the 3 banks, DBS continues to be the ‘most expensive’, as it has the highest P/E and P/B ratios among the 3. Its dividend yield is also the lowest.
At the other end of the spectrum, OCBC continues to be the ‘cheapest’, with its P/E ratio being the lowest among the 3. At the same time, its dividend yield is also the highest.
Closing Thoughts
Even though all 3 banks had some weaknesses in their financial figures and ratios this time round, but on the whole, they continue to remain very strong. I am confident of the management of the respective banks to successfully navigate through the current economic uncertainty and emerge stronger.
In terms of performance this time round, considering the many new records that DBS has once again set for itself in its 1Q results, no surprises there that it emerged as the ‘winner’ in having the strongest set of results this time round.
Looking ahead, the banks may face headwinds in terms of reduced loan growth, along with an increase in their non-performing loans ratio should a recession break out later this year (with that in mind, its quite understandable the management is increasing their allowances to deal with the possible scenario).
On the other hand, if inflation in the US can somehow continue its downward decline (though at this point in time, the possibility of this happening is rather low) and the US Federal Reserve resumes its interest rate cuts, no doubt the banks’ net interest margin may continue to slide, but it will be offset by an increase in loan volume (as lower interest rates will spur business activities, as well as individuals taking on borrowings for things like housing or vehicle).
With that, I have come to the end of my comparison on the 3 banks’ latest 1Q financial figures and ratios. Do note that all the opinions expressed in this post are purely mine which I’m sharing for educational purposes only. You are strongly advised to do your own due diligence before making any investment decisions.
Disclaimer: At the time of writing, I am a shareholder of DBS, UOB, and OCBC.
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