The share prices of Singapore’s three local banks have been on a tear.
Both United Overseas Bank Ltd (SGX: U11), or UOB, and OCBC Ltd (SGX: O39) are trading close to their year-highs, and are up 13.3% and 17.4% year to date, respectively.
DBS Group (SGX: D05) has not only hit a year-high, but has also chalked up a new all-time high of S$30.87 in early July. Its shares are currently up around 16.7% year to date.
The performance of the three lenders blows past the rise of the benchmark Straits Times Index (SGX: ^STI), which has risen just around 9% during the same period.
All three banks have reported improved sentiment arising from increased levels of COVID-19 vaccinations around the world.
Business conditions have also eased after the tough challenges faced last year.
Investors are feeling ebullient on banks’ prospects, but are these sentiments justified?
Can bank stocks rise further, or are they ripe for a long-awaited pullback?