DBS led the pack with a dividend yield of 4.9%.
DBS Group (DBS), Oversea-Chinese Banking Corp (OCBC) and United Overseas Bank (UOB) have maintained an average indicative dividend yield of 4.5% in H1 as the Big Three continues to enjoy strong profit growth, according to an SGX report.
Since the end of October 2018, the average indicative dividend yield of the three banks at the end of each month has remained above 4.0%. DBS has the highest dividend yield at 4.9% in H1, whilst OCBC and UOB were at 4.5% and 4.2%, respectively.
The three lenders also rank amongst the ten largest weights of a number of indices, including the Straits Times Index (STI), FTSE ASEAN All-Share Index and FTSE Developed Asia Pacific ex-Japan Sustainable Yield Index.
DBS maintains the fifth largest weight within the FTSE Developed Asia Pacific ex-Japan Sustainable Yield Index, with OCBC claiming the sixth largest weight and UOB the tenth largest weight. Together, the three banks maintained as much as 8.7% of the index weight as of July 31.
The three banks maintain a combined market capitalisation of S$151b with an average daily turnover of S$230m over the first seven months of 2019. Their average total return is at 10% over the same period.
In the first half of the year, DBS, OCBC and UOB reported an average 9% YoY increase in net profit. Combined, the three banks registered total income of $17.5b, up from $15.9b in H1 2018. The average net interest margin (NIM) for the three banks in H1 was 1.82%, compared to 1.78% in H1 2018.
The average return on equity (ROE) for the three banks stood at 12.5% for the same period, up from 12.1% in H1 2018 and its average price-to-book (P/B) of the three banks is currently 1.1x, which ranges from 1.0x for OCBC to 1.3x for DBS. By comparison, the five-year average P/B for the three banks is 1.2x.
DBS, OCBC and UOB also averaged intraday 1 minute annualised volatility of 12.4% over the first seven months of 2019, compared to an average of 18.2% for the remaining STI stocks.
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