Banks in Singapore dominate the boom in repurchase of shares

Singapore lenders utilize the recent weakness in their share prices to buy stock, and form most of the total repurchase of corporate corporate, which is the largest in the city state in four years. The value of repurchase of DBS Group Holdings Ltd., the largest bank of Singapore, is almost half of all the equity return in Singapore from April 1 to April 23, followed by United Overseas Bank Ltd. at 25% and Oversea-Chinese Banking Corp. On just over 8%, according to data compiled by Bloomberg. Singapore banks, one of the well-capitalized in the region, have promised in recent months to hand over billions of dollars in surplus capital to investors based on record-high earnings. Such action came in handy during global sales sales caused by US President Donald Trump’s tariff measures. Elsewhere, banks have emerged as the largest contributors to repurchase in Europe, while the plans for shares announced in China this month have reached the most since a stock route in February 2024. The analyst of Maybank Thilan Wickramasinghe said that the lenders of Singapore have been carrying some time, despite the recent transactions. However, he noted that there may be risks that capital returns can be reconsidered, given the greater uncertainty in the operating environment. Earlier this month, shares of DBS, UOB and OCBC fell to a low of the month when they joined a global stock lead before cutting losses. Investors are still concerned that poor economic growth will lead to interest rate cuts and affect the lending margins of banks. Singapore Banks report quarterly results next month. Morgan Stanley’s Southeastern Asian analysts led by Nick Lord’s earnings estimates of Singapore lenders reduced by up to 11% for 2025, and 8% -11% for 2026. The bank said in a report that the main driving for the changing estimates for 2025 a ‘advance provision based on a deterrent macroeconomic.’ Despite the cutting of earnings forecasts, Morgan Stanley has left capital returns unchanged because he expects the banks ‘fully charged’ ordinary stock level 1 ratios to stay healthy, partly due to lower loan growth and a still return on the shares. Meanwhile, Goldman Sachs has maintained a buying rating on the three banks and said it benefits shares with ‘robust and sustainable profitability and the ability to increase capital returns.’ It expects excess capital to build up the trio by 2027, as the borrowers remain capital -generative. Jefferies analyst Sam Wong said the repurchase is not the most valuable form of shareholder returns, as all three lenders trade above their book value. “That said, a repurchase mandate will enable the banks to provide some stability to share the price in an uncertain environment and develop a more sticky investor base,” Wong said in ‘Ne post. With the help of Julie Chien. © 2025 Bloomberg MP This article was generated from an automatic news agency feed without edits to text. First published: 28 Apr 2025, 06:17 am Ist