Broker: CGS International
Date of Report: June 9, 2026
Excerpt from CGS International report.

Report Summary

Sector Action

Singapore Banks sector upgraded from Neutral to Overweight. Earnings upside expected from stronger Net Interest Income (NII) and potential Net Interest Margin (NIM) expansion in FY27F. Key catalysts: capital inflow, loan growth, and stabilized rates.

Stock Focus & Action

• DBS Group (DBS SP)
  Action: Add (Buy)
  Target Price: S\$69.90
  Current Price: S\$62.76
  Key Idea: Sector top pick for best-in-class ROE (expected 20%). FY27F dividend yield of ~5.6%. Potential special DPS of 92.6 Scts at end-FY27F due to unutilized share buyback. Re-rating catalysts: sustained wealth management fee income, easing asset quality concerns.
• OCBC (OCBC SP)
  Action: Add (Buy)
  Target Price: S\$26.00
  Current Price: S\$23.40
  Key Idea: Upgraded to Add on higher NIMs and improved ROE (13.5%). Special DPS of 18.7 Scts expected at end-FY26F. Acquisition of HSBC Indonesia retail and wealth business may enhance ROE. Key risks: integration costs, provision increases.
• United Overseas Bank (UOB SP)
  Action: Add (Buy)
  Target Price: S\$42.60
  Current Price: S\$37.79
  Key Idea: Upgraded to Add; highest CASA ratio among peers. ROE assumption raised to 12.5%. Share buyback progressing, likely to complete by end-FY27F, supporting EPS accretion. Dividend yield expected at 4.5%-5.1%.

Implications

Investors should focus on DBS, OCBC, and UOB with actionable Add (Buy) calls. All stocks have revised higher target prices and positive catalysts, including NIM expansion, robust dividend yields, capital return initiatives, and sector structural growth.

above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website : https://www.cgs-cimb.com