In comparison, DBS is anticipating an interim dividend of at least 19 cents for OCBC with little expectations of any further upside due to a lack of excess capital, due to the high capital consumption of its insurance operations.
SINGAPORE (July 19): DBS Vickers Securities expects an “interesting” 2Q18 earnings season with diverging trends across Singapore’s banks as they continue to spend on improving technology infrastructure, with some potential for slight upticks in personnel costs for salary revisions.
While the research house has rated both UOB and OCBC at “hold” with target prices of $28.30 and $12.20, respectively, it prefers the former as a more attractive dividend play on expectations of at least a 40-cent interim dividend to be declared for the quarter.
