Singapore-listed corporations are increasingly repurchasing their own shares, a trend that investors should monitor closely.

During the initial seven months of 2026, over 70 primary-listed companies spent S$1.9 billion buying back shares on the open market, a significant rise from the S$1.3 billion recorded in the same period the previous year. This tally excludes secondary listings, REITs, business trusts, and stapled trusts.

Leading the pack for the seven-month period was Singapore Telecommunications (SGX: Z74), or Singtel. Keppel (SGX: BN4) secured the second spot, while Oversea-Chinese Banking Corporation (SGX: O39), or OCBC, came in third.

Companies typically engage in share repurchases to support employee compensation plans or to deploy surplus capital. ACRA notes that buybacks can enhance earnings per share (EPS) and return on equity (ROE), or allow a company to act on perceived undervaluation. It is important to note that a buyback and a dividend both draw from the same cash reserves.

What does Singtel get for S$893 million?

Singtel repurchased 195.3 million shares for S$893 million over the seven months, including 23.6 million shares for S$103.6 million in July alone. This single company contributed nearly half of the S$1.9 billion market total.

Under its S$2 billion Value Realisation Share Buyback programme, Singtel cancels the shares it buys, permanently removing them from circulation and boosting the stake of every remaining shareholder. On a pro-forma FY2026 basis, the group expects a permanent uplift of approximately 3% in underlying EPS upon completion of the programme. Singtel also anticipates a higher trajectory for EPS and dividend per share (DPS), though these figures are projections and have not yet been reported.

For the fiscal year ended 31 March 2026 (FY2026), the board proposed a total ordinary dividend of S$0.185 per share, a 9% year-on-year (YoY) increase. This total comprises a core dividend of S$0.134 and a separate value realisation dividend of S$0.051. Underlying net profit rose 12% YoY to S$2.8 billion, while operating profit gained 8.9% to S$1.5 billion. It is worth noting that the buyback totals are calculated on a calendar basis, not Singtel's fiscal year.

What is Keppel buying back with?

Keppel, which ranked second over the seven months, repurchased 21.6 million shares for around S$247 million in July. The funding for these buybacks comes from a varied financial picture.

For the first half of 2026 (1H2026), revenue rose 24.6% YoY to S$3.8 billion. However, net profit attributable to shareholders fell 59% to S$154.7 million, after a S$375 million loss in the non-core portfolio. Excluding that portfolio, net profit climbed 25% to S$530 million. Recurring income grew 13% to S$467 million.

Operating cash flow dropped to S$96.8 million from S$219.4 million a year ago. Adding investing activities, Keppel reported a free cash inflow of S$570 million, driven by S$1.1 billion in divestment proceeds and dividends received, rather than day-to-day trading. As of 30 June 2026, Keppel held S$2.2 billion in cash against borrowings of S$11.3 billion (excluding lease liabilities). The interim dividend remained unchanged at S$0.150 per share.

Can profits sustain OCBC’s buybacks?

OCBC ranked third over the first seven months of the year, purchasing more than 10 million shares for approximately S$220 million. The bank's financial performance provides the backdrop for this activity.

For the first half of 2026 (1H2026), total income rose 11% YoY to S$8 billion, while net profit attributable to shareholders climbed 13% to a record S$4.2 billion. Non-interest income was the key driver, surging 36% YoY to S$3.5 billion. Fees and commissions rose 26% to S$1.4 billion, trading income jumped 46% to S$1.1 billion, and insurance income added 49% to S$791 million.

Lending, however, worked harder for less. Net interest income slipped 3% YoY to S$4.5 billion as the net interest margin narrowed to 1.73% from 1.98%. Customer loans grew 12% to S$364.5 billion, absorbing much of that squeeze. The board declared an interim dividend of S$0.47 per share, up 15% from S$0.41 a year ago. OCBC’s CET1 ratio fell 1.3 percentage points YoY to 15.7%, as both loan growth and a S$2.5 billion capital return draw on that capital.

Read the mechanism, not the amount

A large buyback indicates a company had cash to spend, but it does not reveal what shareholders received in return. Investors should ask whether the repurchased shares are cancelled or held in treasury. Cancelled shares disappear permanently, as with Singtel's EPS uplift. Treasury shares can be returned to the market later, so it is wise to check the announcements for the other two names.

It is also crucial to work out what pays for the buyback. Cash from operations differs from the proceeds of an asset sale, which cannot be repeated indefinitely. Finally, look at the dividend over the same period. Singtel and OCBC both raised theirs, while Keppel’s has not moved.