DBS, UOB shares outperform OCBC after results

People withdraw money from United Overseas Bank (UOB), Development Bank of Singapore (DBS) and Oversea-Chinese Banking Corporation (OCBC) automated tellers in Singapore on May 17, 2013. Shares in OCBC fell after worse-than-expected quarterly results,
People withdraw money from United Overseas Bank (UOB), Development Bank of Singapore (DBS) and Oversea-Chinese Banking Corporation (OCBC) automated tellers in Singapore on May 17, 2013. Shares in OCBC fell after worse-than-expected quarterly results, underperforming rivals DBS and UOB, whose results beat forecasts. -- FILE PHOTO: REUTERS

REUTERS - Shares in Oversea-Chinese Banking Corporation fell after worse-than-expected quarterly results, underperforming rivals DBS Group Holdings and United Overseas Bank, whose results beat forecasts.

OCBC, Singapore's second-largest bank, posted an 8 per cent drop in quarterly profit, while DBS and UOB reported net profit growth of 10 per cent and 9.9 per cent respectively.

DBS, Southeast Asia's biggest bank, rose 1.3 per cent to $17.47, on course for a second day of gains and the sixth straight week of climb. Investors viewed the end of the company's deal to purchase a controlling stake in PT Bank Danamon Indonesia, in addition to upbeat results, as positive signs.

"Without Danamon, we believe DBS can pay higher dividends going forward and we revise our DPS (dividend per share) estimates higher based on a 40 per cent dividend payout ratio,"said Barclays in a note.

The bank's longer-term regional expansion will lag behind its peers that already have a large presence.

OCBC shares inched down more than half a per cent to $10.60, off a two-month high of $10.72 hit in the previous session.

Great Eastern Holdings, OCBC's insurance arm that had reported a 77 per cent drop in profit, was down 0.8 per cent.

Singapore's benchmark Straits Times Index inched up 0.3 per cent to 3,253.63 points.

In other stocks, Cosco Corp (Singapore) shares dropped as much as 2.7 per cent to a 1-1/2-week low of $0.725, after the company reported a 56 per cent fall in its quarterly net profit.