What is your take on the shares of our local banks?

The 3 local banks are impressive blue chip stocks are solid dividend payers for a long time. I am currently invested in DBS and yet to have a position in OCBC in UOB. At current valuation, UOB looks fairly valued now so I may take a position. Overall they are solid businesses.

Note: this is not a buy/sell advice, please do your own due diligience before making any investment decisions

Hi anon,

The banks are fantastic dividend players and have strong balance sheets and decent diversification of their business lines. I would encourage you to analyze them first before you decide which one to buy.

Look at factors such as:

1. Share of income from net interest income

2. Profit margin

3. Dividend payout ratio

4. Capital adequacy ratio

5. Non performing loans

6. Valuation

7. Year on year growth

These metrics should hopefully give you an idea of what to look at, and of course, do some reading such as Sudhan's article.