Last month, Singapore’s three major banks announced their financial results for the year ended 31 December 2019.
For those uninitiated, those banks are — DBS Group Holdings Ltd (SGX: D05), Oversea-Chinese Banking Corporation Limited (SGX: O39) and United Overseas Bank Ltd (SGX: U11).
The banks, which make up around 40% of the Straits Times Index, performed well financially in 2019.
For 2019, the banking trio averaged a net profit of S$5.2 billion, up 10.1% year-on-year.
Among them, DBS reported the highest net profit of S$6.39 billion, translating to an increase of 14% compared to a year back.
For investors who are looking to pick the best of the lot, here’s a comparison of the banks’ 2019 critical financial ratios, including their valuations.
Profitability RatiosThe following table shows a few key ratios that give us a better picture of the banks’ profitability (the “best” metrics are in bold):
BankNet Interest MarginCost-to-Income RatioReturn on AssetsReturn on...