DBS, OCBC and UOB shares hit record highs in July

SINGAPORE, 21 JULY 2026 —

DBS Group Holdings, Oversea-Chinese Banking Corp and United Overseas Bank vaulted to fresh records this month as investor optimism over higher-for-longer interest rates and second-quarter earnings lifted the three lenders.

Analysts at Macquarie Capital said the pause in US interest-rate cuts at the June Federal Reserve meeting had improved the outlook for net interest margins across the sector. “Macro conditions have improved relative to the end of the first quarter,” said Jayden Vantarakis, Macquarie’s head of ASEAN equity research. “The pause on rate cuts has supported banks’ net interest margins.”

Macquarie upgraded DBS and UOB to “outperform” and retained the same rating on OCBC. It set price targets of S$70.86 for DBS, S$27.76 for OCBC and S$45.16 for UOB, ranking UOB highest for upside potential.

RHB Securities kept its buy call on OCBC with a target of S$29.80. The firm expects OCBC’s second-quarter profit after tax to rise by a mid-single-digit percentage from a year earlier, though growth could slow compared with the first quarter.

OCBC cited inflows into Singapore’s wealth-management industry as the city-state deepens its role as an Asian financial hub. Its group research team compared banks to real estate investment trusts because of their high and predictable dividend yields of 4% to 5%. “Even at these higher share prices, the dividend yield remains attractive for long-term investors and foreign buyers,” the team said.

Singapore Exchange’s plan to cut the standard board lot size for shares priced above S$10, effective from October 5, should make the three banks more accessible to retail investors. The reduction from 100 to 10 units applies to 11 counters, including DBS, OCBC and UOB.

Vantarakis said smaller board lots would lower the minimum investment needed to buy higher-priced stocks, increasing retail participation. Shekhar Jaiswal, head of equity research at RHB Singapore, expects the adjustment to lift trading volumes and market breadth, especially for DBS, OCBC and UOB.

“We expect the immediate impact to be on the number of trades rather than on share price re-rating,” Jaiswal said. “When combined with broader reforms such as the Equity Market Development Programme and improved market-making incentives, we could see a sustained rise in participation and liquidity.”

Analysts warned that bank stocks remain sensitive to macroeconomic risks. Vantarakis noted that lower interest rates could compress net interest income while weaker markets could reduce wealth-management revenue. OCBC’s head of equity research Carmen Lee said buybacks and strong dividend payouts will continue to attract funds to the sector, helping to sustain valuations even after the recent run-up.

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