Part 7/8:

Lessons learned from the 2008 global financial crisis, which prompted tighter regulations and higher capital requirements, have notably strengthened the banking sector. Today’s banks possess more diversified portfolios, higher provisioning, and better risk management practices, rendering them better equipped to handle downturns.

Valuation and Future Potential

Market consensus from CGS-CIMB and other analysts remains positive, with all three banks rated as 'Accumulation/Add' by their research. Currently trading at around 1.3 times P/B, these stocks are attractive, especially considering the cycles of rate hikes by the Federal Reserve. Historically, during previous rate hike cycles, DBS and OCBC traded at slightly higher multiples (1.3–1.4), indicating scope for re-rating.