Broker Name: DBS Bank Ltd
Date of Report: 3 October 2025
Excerpt from DBS Bank Ltd report.
Report Summary:
- US banks are increasing shareholder payouts through higher dividends and large share buybacks, supported by lighter regulation and lower capital requirements after 2025 stress tests. Major US banks plan up to USD20-50bn in buybacks.
- Asia banks, including DBS, OCBC, UOB, and Hang Seng Bank, are returning excess capital via dividends and buybacks, backed by strong capital buffers, while China banks maintain attractive yields but focus on supporting the real economy rather than increasing payouts.
- With the start of the Fed’s rate cut cycle, US banks are expected to benefit from rising loan growth, deposits, and market activities. Asia banks may see lower net interest income due to falling rates, but stronger non-interest income and robust dividend yields (4-10%) continue to support share prices.
- Asset risks persist for Hong Kong and Singapore banks due to commercial real estate exposures, while China CRE risks are largely priced in. Selectivity in banking stocks is encouraged, preferring US banks with restructuring stories and Asia banks with clear dividend visibility.
Above is an excerpt from a report by DBS Bank Ltd. Clients of DBS Bank Ltd can be the first to access the full report from the DBS website: https://www.dbs.com
