SG banks’ uncertainty ratings revised to low as tariff risks ease

Their uncertainty risks were raised to medium in April 2025.

Singapore’s big three banks’ “uncertainty ratings” have been lowered to low as US tariff risks ease, according to the Morningstar Equity Analyst Note.

“We now judge these risks to have eased sufficiently to restore low ratings,” said Michael Makdad, senior equity analyst, Morningstar, in a 29 August 2025 report.

DBS, OCBC, and UOB’s share price volatility has been consistent with a low rating, Makdad added.

Morningstar had earlier raised the banks’ uncertainty risk rating to medium in April 2025 due to risks associated with the US import tariffs.

Fair value estimates for the three banks were retained: S$48 for DBS Group, S$18.5 for OCBC, and S$38 for UOB.

DBS trades 5% above fair value, OCBC 10% below, and UOB 7% below, Makdad noted.