5 Quick Things to Learn About Singapore’s Big 3 Bank Stocks

Singapore’s three major banks make up around a third of the local stock market benchmark, the Straits Times Index (SGX: ^STI).

The trio of banks would be DBS Group Holdings Ltd (SGX: D05)Oversea-Chinese Banking Corp Limited (SGX: O39), and United Overseas Bank Ltd (SGX: U11). To understand the three banks, a recent report from bourse operator Singapore Exchange may be helpful. The report contained information on the valuations, market caps and stock market performances of the trio.

Here are five things investors should know about Singapore’s big three bank stocks (figures as of 2 June 2017, unless otherwise stated):

1. DBS Group tops the charts as Singapore’s biggest bank with a market cap of $52.5 billion. OCBC is second with a market cap of $44.2 billion while UOB ranks third with a market cap of $38.0 billion.

2. Given the massive size of each bank, it would be not surprising that the trio are among the top 10 largest listed companies in Singapore. What may surprise investors is that Singapore’s three banks also rank among the top 10 largest listed companies in South East Asia.

3. When it comes to stock market performance, DBS Group comes up tops again. Singapore’s biggest bank recorded a total annualised return of 13% over the past five years. UOB is in second place with a total annual return of 10.1% over the same period. OCBC came in with a total return of 9.5% per year.

4. OCBC, however, provides the highest dividend yields among the trio at 3.4%. UOB is second with a yield of 3% while DBS Group has a dividend yield of 2.9%.

5. According to Global Finance World (a financial magazine), DBS is ranked as the world’s 12th safest bank. OCBC comes in at 14th place while UOB sits at 16th.

The five pieces of information above provide investors with a glimpse of the three biggest banks in Singapore. But the investing homework should not stop there. Investors should dig deeper before any investing decision can be reached.

If you'd like more investing insights as well as the latest news about Singapore's stock market, you can get both from The Motley Fool's free investing newsletter, Take Stock Singapore. It can help you grow your wealth in the years ahead. So, come sign up here.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended shares of Singapore Exchange and United Overseas Bank. Motley Fool Singapore writer Ching Hui Leong doesn't own shares in any companies mentioned.