DBS shares versus OCBC shares

It is the clash of the banking titans as Singapore no.1 and 2 banks slugged it out to achieve stellar first quarter 2018 results. On the basis of the latest financial results, DBS edged past OCBC to smash in a record $1.52 billion. Shareholders must be very pleased with DBS CEO Piyush Gupta’s performance because share price stormed to $30 upon the release of the results.

Notwithstanding the good performances, there are lurking risks from technology disruptions which had impacted SingPost, M1 and ComfortDelgro. To tackle this challenge, DBS CEO is leading the bank on an aggressive digital transformation. After all, Piyush Gupta once famously declared that “people need banking, not banks”. But then again, OCBC has not been resting on its laurels and had been making a series of significant acquisitions in the wealth management realms that may prove to be game-changers in the coming years.

It remains to be seen as who will be the ultimate winner but I firmly believe strategies made by DBS’ Gupta and OCBC’s Samuel Tsien would define the course of the banks’ destinies with the next five years.


DBS share price to reach $50 for 50th anniversary?

Since the $30 mark, the share price of DBS has corrected slightly, presumably because some investors had cashed in on the profits. But how high will DBS share price go? With CEO Gupta, you never know if the share price would hit $50, just in time to celebrate DBS’ 50th anniversary.

Two years ago, he put his money where his mouth is when he purchased $2.8 million worth of DBS shares. Back then, the DBS shares were languishing at $13.88 apiece and he was deeply convinced that the shares were grossly undervalued. Well, his insight proved to be proverbial as share price surged by more than 100% within the span of only two years.

Being the bellwether of the economy, DBS and OCBC’s financial results [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]

My strategy

I am not vested in either DBS or OCBC shares but thought that these two counters could be interesting long term investments. Between the two, I would prefer OCBC because of its strategic acquisitions made in recent years as well as its potential asset divestments. Till then, enjoy the ride.

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2 thoughts on “DBS shares versus OCBC shares

  • What would be a fair price for OCBC?

  • Hi there,

    It is difficult to determine the fair value of OCBC given that its unrealized valuation surplus is more than $10 billion. I reckon the fair value could be at least $20 for OCBC share but it is difficult to imagine the price going all the way to that sort of level.

    I think $11 would be a good entry price for me but my strategy would not be buy and hold. Instead, I would buy on dip and sell on divestment news.


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