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Singapore banks’ dividends to make strong comeback in FY 2021
26 July 2021Ralph Chen
Singapore banks' dividends to make strong comeback in FY
2021
Key implications
The banking trio of DBS, UOB, and OCBC in Singapore are
expected to increase dividends by an average rate of 40% on a
dividends-per-share (DPS) basis in fiscal year (FY) 2021 in the
base case scenario, with estimated total dividend payouts expected
in the amount of US$5.1 billion, versus US$3.6 billion in
2020.
Our bull case scenario forecasts DBS, UOB, and OCBC will pay
DPS of S$1.17, S$1.18, and S$0.52, respectively, for FY 2021.
The recovery of dividends is attributable to the projected
removal of dividend restrictions by the Monetary Authority of
Singapore (MAS) and broad-based economic recovery on the back of
the effective execution of Singapore's vaccination program.
Singaporean banks lead among Southeast Asian markets in terms
of aggregate dividend payouts recovery in 2021, with around 42%
growth in comparison with Malaysia and Indonesia, which are
expected to report largely flat aggregate dividends.
For more information, please contact
dividendsapac@ihsmarkit.com
Posted 26 July 2021 by Ralph Chen, Research Analyst II, Dividend Forecasting for Australia and Singapore Market
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