Singapore banks’ dividends to weather economic and global trade woes

DBS and OCBC are expected to hold their dividends steady in 2025.

Singapore’s biggest banks are expected to maintain their ability to pay a generous dividend even with the threat of economic and trade impact from the US tariffs, says UOB Kay Hian.

Both DBS Group Holdings and Oversea-Chinese Banking Corporation (OCBC) were named as having the “ability to pay generous dividends under threat,” said UOBKH analyst Jonathan Koh.

DBS is expected to maintain a DPS of 60 Singaporean cents in Q4 2025.

OCBC is also expected to have a stable DPS of 100 Singaporean cents in 2025.

However, Koh said that they may revise their DPS forecasts for the two banks if downward pressure on economic growth intensifies.

Singapore remains vulnerable to a slowdown in trade globally and regionally.

“According to UOB GEMR, final demand from the US accounted for 8.3% of domestic value-add in Singapore, which is high relative to other ASEAN countries,” Koh said.

Deputy Prime Minister Gan Kim Yong recently assured Singaporeans that the government is prepared to provide more support for households and businesses if the situation deteriorates.

Meanwhile, the Trump administration has made two major consecutive concessions in thet past week, announcing a 90-day pause on the tariffs for trading partners and instead subjecting them to a flat tariff of 10%— except for China, which it raised to 125%.

The US has also exempted 20 categories of electronic products imported from China from its reciprocal tariff of 125%. These include semiconductors, memory chips, smartphones, laptops, tablets, computer monitors, and flat panel displays.