UOB Kay Hian upgraded Singapore’s banking sector to Overweight on Tuesday, naming DBS as its preferred stock with a S$84.70 (about $66.25) target, while cutting its target on Oversea-Chinese Banking and keeping a Buy rating.
MoneyTurkey Research Desk | 10 November 2026
Key points
- UOB Kay Hian raised the Singapore banking sector to Overweight, citing a rising Singapore Overnight Rate Average, healthy lending demand and wealth inflows
- DBS is the firm’s preferred pick, rated Buy with a target of S$84.70 (about $66.25)
- Oversea-Chinese Banking stays at Buy, but the target was lowered to S$33.00 (about $25.81) on near-term uncertainties in Indonesia
The call
In its Singapore Daily dated Tuesday, 10 November 2026, UOB Kay Hian said it had upgraded the banking sector to Overweight because a rising Singapore Overnight Rate Average, healthy lending demand and wealth inflows would support earnings growth. DBS is the preferred pick, the note said, on its wealth-management franchise and deposit base, with a Buy rating and a S$84.70 (about $66.25) target.
The firm kept a Buy rating on Oversea-Chinese Banking but lowered the target to S$33.00 (about $25.81), saying the bank’s regional growth strategy is tempered by near-term uncertainties in Indonesia. The same note put the shares at S$27.73 (about $21.69).
The results behind the OCBC target
Oversea-Chinese Banking reported third-quarter net profit of S$2,042 million (about $1.60 billion), up 3% from a year earlier but down 8% from the second quarter, UOB Kay Hian said. Weaker investment returns at Great Eastern tempered record banking profits. Loan growth supported net interest income, fees stayed near record levels, and wealth assets under management reached S$358 billion (about $280 billion), the note said.
Dollar figures use a rate of $0.7822 per Singapore dollar, the Yahoo Finance close for 10 November 2026.
The market backdrop
UOB Kay Hian said the Straits Times Index fell 117.08 points to 5,179.17, with weakness in DBS, Seatrium and Oversea-Chinese Banking, on turnover of S$3.24 billion (about $2.53 billion).
What to watch
- Whether the Singapore Overnight Rate Average keeps rising
- Loan growth and wealth inflows at DBS and Oversea-Chinese Banking
- Any further comment from the firm on its Indonesia caution for Oversea-Chinese Banking
Related on MoneyTurkey
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- Indonesia’s Bourse to Meet MSCI Before Thursday Index Call
For information only. Not investment advice.
Sources
- UOB Kay Hian, Singapore Daily, 10 November 2026: uobkh.com.sg
- Yahoo Finance, Singapore dollar rate, 10 November 2026: finance.yahoo.com
