Trump’s wave of tariffs, termed “Liberation Day”, has unleashed a wave of chaos across global stock markets. The NASDAQ Composite Index fell into a bear market while the Straits Times Index (SGX: ^STI) entered a correction as it fell around 13.4% from its peak of 4,000 points. The bellwether blue-chip index’s decline was led by the three local banks, namely DBS Group (SGX: D05), United Overseas Bank (SGX: U11), or UOB, and OCBC Ltd (SGX: O39). As of 8 April 2025, DBS had fallen 16.5% over the past three trading days. OCBC was not far behind with a 13.3% tumble while UOB’s share price skidded 12.9% since 3 April. With the three banks’ share prices falling from their highs, should investors bite?

Strong results for 2024

All three banks reported strong results for 2024 with net profit hitting a record high. DBS saw its net profit climb 12% year on year to an all-time high of S$11.3 billion on the back of a 10% year-on-year increase in total income....