OCBC leads Singapore bank shares lower before earnings announcements
UOB will begin the banks’ earnings announcements on Wednesday, with analysts watching fee income and pressure on lending margins.
OCBC shares fell 3.7 per cent on the morning of Nov 2, the largest decline among Singapore’s three local banks, as investors awaited their earnings announcements. DBS and UOB also traded lower ahead of the results, which begin with UOB on Wednesday.
At 11.43 am, OCBC traded at S$28.22, a drop of S$1.07. DBS was at S$71.31 after losing S$1.82, or 2.5 per cent, while UOB slipped S$0.89, or 2.2 per cent, to S$40.48.
Analysts previously told The Business Times that third-quarter fees from wealth management could soften after a strong performance in the previous quarter. They also said net interest margins remained under pressure.
Investors are expected to examine financing exposure linked to artificial intelligence, alongside how higher bond yields affect investment holdings and capital positions. Nevertheless, the analysts expect the banks to maintain resilient capital positions and underlying asset quality.
