DBS, UOB, OCBC lead dividend growth as Singapore companies pay out US$8.2 billion in H1

DBS was among the top 13 banking contributors to H1 dividend growth, says Capital Group

The three local banks led dividend growth in Singapore for the first half of 2025, according to a study by asset manager Capital Group.

Singapore companies paid a total of US$8.2 billion in dividends in H1. Adjusted for one-off special dividends, exchange rates and other minor factors, this is up 13.1 per cent on year.

DBS led core dividend growth after hiking its quarterly payouts, while special dividends from UOB and OCBC – both of which pay dividends half-yearly – boosted top-line growth of the dividend figures.

In Q1 and Q2, DBS declared an ordinary dividend of S$0.60 per share and a capital return dividend of S$0.15 per share for each quarter.

This brought the total dividend payout each quarter to S$0.75 per share, compared with S$0.54 a year earlier.

UOB declared an interim dividend of S$0.85 per share for H1, down from S$0.88 a year earlier, but paid a special dividend of S$0.25 per share.

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Meanwhile, OCBC declared an interim dividend of S$0.41 per share for H1, down from S$0.44 a year earlier. It paid a special dividend of S$0.16 per share for FY2024.

Singapore banks’ solid earnings growth means they have built strong capital buffers that have enabled them to return more capital to investors via dividends and share buybacks, the study said.

Globally, the financial sector contributed two-fifths of global dividend growth in H1 due to a combination of its large size and favourable economic conditions.

The sector’s core dividend grew 9.2 per cent year on year to reach a record US$299 billion, with banks responsible for just under half of the sector’s overall increase.

DBS was among the top 13 banking contributors to H1 dividend growth. Other banks in the list include Mitsubishi UFJ in Japan and JPMorgan Chase in the US.

Overall, dividends in the Asia-Pacific region – excluding Japan, China and Hong Kong – grew 5.2 per cent on a core basis to US$47.5 billion in H1, boosted by Taiwan, South Korea and Singapore.

Globally, core dividend rose 6.2 per cent year on year in H1 to reach a record US$1.14 trillion.

For H2 2025, Capital Group expects scope for continued dividend growth, particularly from Singapore’s banks, Taiwanese technology and shipping, across the market in Japan, and Spanish utilities.

The report looks at the dividends of the world’s largest 1,600 companies, which represent around 85 per cent of global market capitalisation as at Mar 31, 2025.