Singapore bank stocks have been on a roll.
The share prices of Singapore’s three big banks, namely DBS Group (SGX: D05), United Overseas Bank Ltd (SGX: U11), or UOB, and OCBC Ltd (SGX: O39) have all hit a 52-week high recently.
This strong performance is a refreshing change from a year ago.
To kick things off, DBS reported a record S$2 billion in net profit for its fiscal 2021 first quarter (1Q2021) earnings.
UOB and OCBC did not disappoint, either.
The two lenders reported a rise in net profit that widely trumped analysts’ estimates, with UOB’s net profit rising 18% year on year to S$1 billion and OCBC more than doubling its net profit year on year.
While sentiment remains positive now, can the banks continue to see bright days ahead?
Could there be room for further price appreciation?
Fee income is the saviour
Source: Banks’ earnings and author’s compilation