Part 5/8:

Investment Perspective: Confidence in the Banks’ Strengths

Despite these uncertainties, analysts remain bullish on Singapore’s banking sector. Maybank Kimmining advocates a 'buy' call for all three banks, citing their strong capital reserves and provisioning levels, which position them well to sustain dividends and navigate potential downturns.

DBS is highlighted as the top pick, attributed to its low funding costs and strong franchise with an expected return on equity (ROE) of around 15% next year. Its valuation, at a price-to-book (P/B) ratio of approximately 1.3, leaves room for further re-rating, especially compared to previous cycles where it traded at 1.6–1.7 times P/B.