The SPDR STI ETF (SGX: ES3) is an exchange-traded fund (ETF) that tracks Singapore’s Straits Times Index (SGX: ^STI).
For July 2026, the ETF turned in a total return of 9.5%.
Three blue chips outpaced this return.
Oversea-Chinese Banking Corporation (SGX: O39) delivered a total returns of 18.1% over the same month.
Meanwhile, Hongkong Land (SGX: H78), or HKLand, returned 14.7% and DBS Group Holdings (SGX: D05) returned 13.1%.
Of the trio, only HKLand published fresh financials in July.
DBS reports next on 6 August 2026 and OCBC on 7 August 2026.
Hence, take note of the different timeframes.
For DBS and OCBC, the numbers below are for the first quarter of 2026 (1Q2026).
In contrast, Hongkong Land has reported results for the first six months of 2026 (1H2026).
Can DBS Grow When Rates Fall?
DBS is Singapore’s largest bank by assets and serves more than 13 million customers across Greater China, Southeast Asia and South Asia.
Total income hit a record S$5.95 billion in 1Q2026, up 1% year on year (YoY).
Rates worked against the bank.
Net interest income (NII) eased 5% YoY to S$3.49 billion, and net interest margin (NIM) narrowed 23 basis points to 1.89% on lower SORA and SOFR rates.
Customer loans still climbed 4% YoY to S$453.2 billion.
The non-performing loan (NPL) ratio improved to 1.0% from 1.1%.
Fees filled the gap.
Non-interest income rose 10% YoY to S$2.45 billion.
Wealth management fees hit a record S$907 million and treasury customer sales a record S$592 million, while net fee and commission income jumped 16% to S$1.48 billion.
Expenses climbed 4% on higher staff costs, and profit before allowances slipped 1% YoY to S$3.65 billion.
Net profit attributable to shareholders edged up 1% YoY to S$2.93 billion, and return on equity (ROE) reached 17.0%.
The board declared S$0.81 per share for the quarter, which splits into an ordinary dividend of S$0.66 and a Capital Return dividend of S$0.15.
Investors should keep the two apart.
The total rose 8% from the S$0.75 paid for 1Q2025.
Where Is OCBC’s Income Coming From Now?
OCBC is Singapore’s second-largest banking group.
It runs commercial banking, wealth management and insurance across more than 19 markets, and owns Great Eastern Holdings.
Total income reached a record S$3.8 billion in 1Q2026, up 5% YoY.
The margin story mirrors DBS.
NII fell 5% to S$2.2 billion on lower SGD, HKD and USD rates, while NIM compressed 28 basis points to 1.76%.
Customer loans grew 9% YoY in constant currency terms to S$347 billion.
The NPL ratio held at 0.9% for the eighth consecutive quarter.
Replacement income arrived faster here.
Non-interest income surged 23% YoY to S$1.6 billion and now makes up over 40% of total income.
Net fee income climbed 24% to S$675 million on a 34% jump in wealth management fees, and insurance income leapt 34% to S$409 million.
Net profit attributable to shareholders climbed 5% YoY to S$2.0 billion.
OCBC does not declare a dividend in the first quarter; interim dividends typically arrive with the first-half results.
Management guided to a 50% ordinary dividend payout for FY2026 and kept its S$2.5 billion capital return plan on track for completion this financial year.
Does Hongkong Land’s Profit Rise Come With Cash?
HKLand develops and manages premium mixed-use property in Asian gateway cities, with over US$50 billion of assets under management.
The company reports in US dollars, so its return to a Singapore-based investor carries a currency element on top of the share price move.
Underlying profit attributable to shareholders rose 11% YoY to US$259.1 million in 1H2026.
Underlying earnings per share rose 14% to US$0.1207 on a reduced share count.
The source of that gain matters.
Operating profit was broadly flat at US$318.9 million.
Higher LANDMARK contributions and a 43% jump in China Integrated Properties earnings offset income lost to the disposal of Marina Bay Financial Centre Tower 3.
The lift came from net financing charges, which fell to US$56.2 million from US$88.0 million.
Lower rates cut this bill directly.
Reported profit surged to US$1.3 billion from US$220.9 million on a US$725.1 million property revaluation gain.
Revaluation gains do not fund dividends; free cash flow does.
And it moved the wrong way.
Operating cash flow less capital expenditure fell to US$153.2 million from US$207.0 million as spending on major renovations nearly doubled to US$109.3 million.
Cash stood at US$2.7 billion against borrowings of US$6.1 billion.
Net debt was US$3.4 billion and net gearing 11%.
The interim dividend still rose to US$0.08 per share from US$0.06, payable on 14 October 2026.
Management expects full-year underlying profit growth broadly in line with the first half.
Get Smart: Test the Income That Replaced the Margin
Falling rates cost each of these three companies something.
Each found a replacement.
July’s move suggests investors are willing to pay for evidence that the replacement holds.
Here is the test to carry into next week.
Wealth and fee income does the work at both banks, and it depends on customers staying active.
Watch whether it holds when markets are quiet.
At HKLand, a smaller interest bill did the work, and that saving stops repeating once rates settle.
A month of returns tells you what the market thinks today.
The August results tell you whether the market was right.
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Disclosure: The Smart Investor owns shares of DBS and OCBC.
