OCBC, UOB Likely Bigger Beneficiaries of Rising Rates than DBS
Dow Jones
Yesterday
Oversea-Chinese Banking Corp. and United Overseas Bank are likely to be bigger beneficiaries of a rising interest-rate environment than their larger peer DBS Group, says RHB Research's Singapore team in a note. This is likely due to the difference in the three banks' hedging positions and net-interest income sensitivity, they say. For instance, UOB has around 80% of its loans on a floating rate basis, while DBS has about one-third of its commercial book in fixed-rate assets, they say.
OCBC remains RHB's top sector pick on its balance sheet strength and earnings momentum, with RHB raising its estimates for the bank's 2027-2028 net profit by 4%-6%.
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