Actions of Singapore banks jump after the regulator raised the dividend ceiling

ATM machines of the three banks listed in Singapore: OCBC, DBS and UOB.

Munshi Ahmed | Bloomberg | .

SINGAPORE – Shares of The prime three Singaporean banks rose Thursday after those in the country financial the regulator raised a stopper on dividend distribution implemented following the Covid-19 pandemic.

The largest in Singapore bank Equity investments of the DBS group climbed about 0.6% in soon trade, while the smaller companies Oversea-Chinese Banking Corp and United Overseas Bank were up about 1%.

The three banks do up around one-Third of the Straits Times Index benchmark, which grew 0.5%.

Southeast Asia city-States financial regulator and central bank, the Monetary Authority of Singapore said Wednesday that the restrictions on bank dividend payments “will not be” extended. “

MAS had last year he urged banks to limit their own total dividends for share for from 2020 to 60% of the previous year’S amount in light of economic uncertainties due in part of the pandemic.

“The global the economic outlook since then improved. While some uncertainties remain, of Singapore economy it should continue on his recovery path, given strengthening global demand And progress in our vaccination schedule, “the regulator said in a declaration.

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before the MAS ‘ move, the European Central Bank and the US Federal Reserve made similar decisions to loosen the restrictions on distribution of dividends by banks.

Eugene Tarzimanov, vice president e senior credit officer at Moody’s Investors Service said in a note expecting Singapore’s big three banks to raise dividend payments to pre-pandemic levels of about 50% of they net income.

He noted that Moody’s had changed his perspective on Singapore banks system negative to stable in March, in recognition of the improvement economy, potential for bank earnings grow and basically stable asset quality.

DBS, OCBC and UOB are scheduled to report second-quarter earnings next week.

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