Meanwhile, DBS Group Holdings “has had a good run”, note the analysts. After its $3 billion buyback, there remains a $5 billion to $7 billion surplus, or 4% to 5% of its market cap. “We do not expect bolt-on mergers and acquisitions (M&As) to materially change the capital return upside.”
Jefferies analysts Sam Wong, Joseph Dickerson and Chen Shujin assume $2 billion additional buybacks for each of Singapore’s three banks in FY2025. They remain bullish on the sector's long-term prospects given strong commitment to capital return and resilient return on equity (ROE).
In a Dec 3 note, the analysts believe United Overseas Bank (SGX:U11
) (UOB) “should play catch-up” with its $2.5 billion capital surplus, or 4% of its market capitalisation, which will enable it to pursue capital return and growth at the same time.
