With 2020 being a very shaky year for the economy, banks are definitely the hardest hit, with loans defaulting and interest rates hitting near 0%. With our 3 local banks, DBS, UOB, and OCBC just releasing their FY2020 results, investors are wondering whether or not they should sell, hold or buy more of these local bank stocks. In this article, I’ll cover how well the 3 local banks did as well as whether or not they are still attractive at their current valuation.

Operating Performance

Year on Year Difference Revenue Profit Before Allowances Allowances Made Net Profit
DBS S$14.59 billion (+0.3%) S$8.434 billion (+2%) S$3.066 billion (+336%) S$4.721 billion (-26%)
UOB S$9.176 billion (-9%) S$5.09 billion (-9%) S$1.554 billion (+257%) S$2.915 billion (-33%)
OCBC S$10.139 billion (-7%) S$6,312 billion (-7%) S$2.043 billion (+129%) S$3.586 billion (-26%)

Jumping right into the operating performance, we can see that DBS was the only bank that managed to increase its revenue y