Quick Take Quick Take: Will dividend restrictions on Singapo | FSMOne SG - Research Highlights

Quick Take

Quick Take: Will dividend restrictions on Singapore banks be lifted soon?

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• During the peak of the COVID-19 outbreak last year, MAS imposed dividend caps on the three banks to ensure that they have sufficient capital to weather through an economic downturn.

• However, at the beginning of this year, some regulators have announced their plans to relax the restrictions placed on their banks’ capital return programmes.

• In light of these events, we believe there is a good chance that the dividend restrictions may be lifted as soon as this year.

• Looking ahead, we also believe that the trio remains in a good position given the brighter economic outlook ahead.

• We maintain our positive stance on the Singapore banking sector. We favour OCBC and UOB over DBS given their more attractive valuations.

: Read the full article here
: OCBC (SGX:O39) and UOB (SGX:U11)