DBS, OCBC shares rally to new highs as Q3 earnings beat forecasts; UOB declines

SINGAPORE - Singapore’s three largest banks – DBS Bank, OCBC Bank and UOB – posted mixed third-quarter results last week as moderating interest rates and an uncertain macroeconomic outlook weighed on performance.

DBS on Nov 6 posted a

better-than-expected profit of $2.95 billion

for the July to September quarter, sending its shares to a record high of $55.59 on Nov 7.

The bank’s total income grew 3 per cent year on year to $5.93 billion, supported by wealth and deposit growth, even as net interest margin – the difference between what a bank earns from loans and what it pays on deposits – fell to 1.96 per cent from 2.11 per cent a year earlier.

DBS shares pared gains to rise 1.95 per cent through the week to close $54.98 on Nov 7.

In contrast,

UOB on Nov 6 posted a sharp 72 per cent drop

in net profit to $443 million from $1.61 billion in the year-ago period, on a surge in credit provisions. The results fell short of a Bloomberg forecast.

Allowances for credit and other losses more than quadrupled to $1.36 billion from $304 million a year earlier, as the bank “took proactive steps to strengthen its provision coverage amid ongoing macroeconomic uncertainties and sector-specific headwinds”.

The stock closed at $33.86 on Nov 7, down 2.34 per cent from the previous week’s close.

OCBC’s profit of $1.98 billion was little changed

from the year-ago period on the back of higher non-interest income and lower allowances, but beat analysts’ expectations.

Non-interest income rose 15 per cent year on year to $1.57 billion from fee, trading and insurance income growth. Total allowances of $139 million were 18 per cent lower year on year.

Its shares reached an all-time high of $17.94 on Nov 7 before trimming gains to close at $17.78, 4.4 per cent higher than the previous week’s close.

The benchmark Straits Times Index, which the local banks are heavyweights of, was lifted to a fresh record of 4,520.49 on Nov 7 before closing 1.44 per cent higher at 4,492.24 from the previous week’s close.

Sheng Siong shares hit new peak

Sheng Siong was in the limelight last week

after its shares on Nov 4 reached $2.59

– its highest since the supermarket operator listed on the Singapore Exchange (SGX) in August 2011.

The stock closed at $2.56 on Nov 7, 10.3 per cent higher than the previous week’s close of $2.32.

Sheng Siong on Oct 30 reported that net profit had risen 12 per cent to $43.8 million for the third quarter, compared with $39.1 million a year earlier. For the three months ended Sept 30, revenue grew 14.4 per cent to $415.5 million.

The growth was primarily driven by a net increase in the total number of Sheng Siong stores to 90 during the quarter, up from 79 in the same period in 2024.

Analysts view Sheng Siong Group as a defensive play amid rising inflation and slower economic growth.

OCBC said demand for groceries could be supported by a shift in consumption patterns, as inflationary pressures and higher living costs steer consumers towards value-focused spending.

RHB analyst Alfie Yeo said that the pipeline for new HDB stores continues to be robust, with three new outlets expected to be released by June 2026. Sheng Siong’s newly announced Sungei Kadut facility is expected to support at least 120 stores.

Fired Fu Yu CEO seeks damages

In the latest turn of events at Fu Yu, the plastic and metal components and products manufacturer said it

received two letters of demand

from sacked chief executive David Seow, claiming about $2 million in total over his alleged wrongful termination and defamation.

The firm on Nov 6 said that it received the letter of demand dated Nov 4, in which Mr Seow sought $1,853,548.39 in unpaid salary.

Mr Seow also sent a letter of demand dated Nov 5 to Fu Yu, its independent directors and corporate secretary, alleging defamation and demanding a bourse filing on Nov 1 announcing his termination be retracted.

Fu Yu added that Mr Seow also demanded a signed apology to be published on SGXNet and damages of $200,000, among other things.

Mr Seow’s dismissal comes after an internal investigation launched by Fu Yu’s newly appointed independent directors after they took office in late June.

Shareholders had questioned the company’s financial performance at its annual general meeting in June, noting that the remuneration for Fu Yu’s directors and key management personnel “appeared to be high in contrast to the low revenue of the company”.

Shares of Fu Yu closed at 10 cents on Nov 7, 4.8 per cent lower than the previous week’s close of 10.5 cents.

Coliwoo shares dip after SGX debut

Shares of co-living operator Coliwoo fell 2.5 per cent below their initial public offering (IPO) price on their first day of trading on the SGX.

The counter on Nov 6 opened at 61.5 cents, above its IPO price of 60 cents,

before closing at 58.5 cents.

The shares then gained 0.86 per cent on Nov 7 to close at 59 cents.

Coliwoo said the IPO received strong interest and commitment from various institutional investors. Nine cornerstone investors, including Avanda Investment Management and UOB Asset Management, subscribed for around 88 million cornerstone shares at the offering price of 60 cents.

Coliwoo is a spin-off from mainboard-listed LHN Group, a real estate management company.

Co-founder Kelvin Lim, who is also the executive chairman and group managing director of LHN, previously told The Straits Times the main reason for hiving off Coliwoo was to improve the allocation of resources within the group.

Coliwoo plans to use the proceeds primarily for expansion, growth and asset enhancement of its co-living business.

Other market movers

Yangzijiang Shipbuilding shares fell 4.26 per cent over last week to close at $3.37 on Nov 7.

Yangzijiang Shipbuilding, in a Nov 4 filing, noted that the Oct 31 sale of about 27.5 million shares by BlackRock meant that the asset manager ceased to be a substantial shareholder of the company.

BlackRock also sold about 10.3 million shares in the shipbuilder on Oct 29.

Singtel in a bourse filing on Nov 7

confirmed that it is having ongoing discussions

in relation to ST Telemedia Global Data Centres, following media reports that the telco and private equity firm KKR are in advanced talks to acquire about 80 per cent of the data centre operator.

“There is no certainty that such discussions will lead to any definitive or binding agreement,” Singtel said, adding that it regularly explores and reviews business opportunities, projects and proposals.

Singtel said it will make an announcement if and when there are any material developments that warrant disclosure, and that investors should exercise caution in their review of any media reports relating to potential transactions ahead of any definitive announcement.

The telco on Nov 7 also confirmed that it sold approximately 0.8 per cent of its direct stake in regional associate Airtel, as it continues to proactively optimise its portfolio through asset recycling. The resultant gain from the sale is estimated to be $1.1 billion.

Following the transaction, Singtel’s stake in Airtel stands at 27.5 per cent and is valued at an estimated $51 billion.

Singtel shares closed 8.94 per cent higher at $4.63 on Nov 7 from the previous week’s close.

What to look out for this week

This week’s line-up of Singapore blue chips scheduled to report earnings includes Singtel, StarHub, Singapore Post and Singapore Airlines.

Singtel will release its half-year results on Nov 12, while StarHub is scheduled to announce its business performance update for the third quarter and nine months ended Sept 30 on Nov 14.

SingPost will announce its unaudited half-year results on Nov 10 before the market opens. Singapore Airlines will report its half-year financial results for the year ending March 31, 2026, on Nov 13 after trading hours.