DBS and OCBC shares hit record highs, but UOB lags behind its peers

UOB shares end flat as it reportedly faces issues with HK and China property loans

- Timothy Goh

Shares of local banks DBS and OCBC hit record highs last week, but UOB trailed behind its peers.

DBS surged to a record high of $56 on Dec 16, before paring gains to close at $54.87 on Dec 19. OCBC shares opened at a fresh high of $19.69 on Dec 19, before closing at $19.55.

UOB lagged behind its peers, trading largely flat through the week to close on Dec 19 at $34.70.

The bank had announced in November that its allowances for credit and other losses more than quadrupled to $1.36 billion, from $304 million a year earlier, as it "took proactive steps to strengthen its provision coverage amid ongoing macroeconomic uncertainties and sector-specific headwinds".

A Bloomberg article published on Dec 17 noted that UOB had financed properties in Hong Kong, including loans to Chinese developers.

It added that in 2025, the bank has had to work through several deals where borrowers struggled to refinance or defaulted, and is paring its overall exposure to Greater China amid a commercial real estate downturn.

Bloomberg also said that UOB has held off from demanding repayment on some Hong Kong and China real estate loans that matured in the past year, working instead with its clients to renegotiate terms and roll over the debt, citing people familiar with the matter.

"UOB is committed to doing right by our customers through the ups and downs of economic cycles," a bank spokeswoman told Bloomberg.

"We take a long-term view of banking relationships, and work closely and constructively with customers facing challenges, offering appropriate solutions while safeguarding the interests of our stakeholders."

Across the broader market, the benchmark Straits Times Index slipped 0.02 per cent, or 0.83 points, to close at 4,569.78 points on Dec 19. The iEdge Singapore Next 50 Index fell 0.1 per cent, or 1.51 points, to 1,434.85.

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