Singapore Banks Post Mixed Q3 Results as Sheng Siong Hits Record High
Singapore’s banking sector showed divergent performance in the third quarter with DBS reaching record highs while UOB faced significant profit declines, even as supermarket chain Sheng Siong hit all-time peaks amid market volatility.
Key Takeaways
- DBS profit beat expectations at $2.95 billion despite margin pressure
- UOB profit plunged 72% to $443 million on credit provisions
- OCBC maintained steady performance with $1.98 billion profit
- Sheng Siong shares reached record high with 12% profit growth
- ST Index hit fresh record of 4,520.49 before closing at 4,492.24
Banking Sector Performance
DBS delivered strong results on November 6 with a better-than-expected $2.95 billion quarterly profit, driving shares to a record $55.59. Total income grew 3% year-on-year to $5.93 billion, though net interest margin declined to 1.96% from 2.11%.
In contrast, UOB reported a sharp 72% drop in net profit to $443 million, missing Bloomberg forecasts. The bank’s allowances for credit losses surged to $1.36 billion from $304 million a year earlier as it strengthened provision coverage amid economic uncertainties.
OCBC maintained stability with $1.98 billion profit, beating analyst expectations. Non-interest income rose 15% to $1.57 billion while total allowances decreased 18% to $139 million. OCBC shares reached an all-time high of $17.94.
Sheng Siong’s Record Run
Sheng Siong shares hit $2.59 on November 4 – their highest since the company’s 2011 SGX listing. The stock closed the week at $2.56, up 10.3% from the previous week.
The supermarket operator reported 12% net profit growth to $43.8 million for Q3, with revenue increasing 14.4% to $415.5 million. Store expansion to 90 locations from 79 in 2024 drove the growth.
Analysts view Sheng Siong as a defensive play amid inflation. RHB analyst Alfie Yeo noted robust pipeline for new HDB stores with three outlets expected by June 2026, while the new Sungei Kadut facility can support at least 120 stores.
Corporate Developments
Fu Yu Corporation faces legal demands from former CEO David Seow seeking approximately $2 million over alleged wrongful termination and defamation. Mr. Seow claims $1.85 million in unpaid salary and $200,000 in defamation damages.
Co-living operator Coliwoo debuted on SGX with shares falling 2.5% below its IPO price of 60 cents on the first trading day. The company reported strong institutional interest with nine cornerstone investors subscribing for 88 million shares.
Other Market Movers
Yangzijiang Shipbuilding shares fell 4.26% after BlackRock ceased to be a substantial shareholder following share sales.
Singtel confirmed ongoing discussions regarding ST Telemedia Global Data Centres with KKR, while also announcing the sale of 0.8% stake in Airtel for an estimated $1.1 billion gain. Singtel shares closed 8.94% higher at $4.63.
Upcoming Earnings
This week’s earnings calendar includes Singtel (November 12), Singapore Airlines (November 13), StarHub (November 14), and Singapore Post (November 10).
