Share buybacks in Singapore surge 62% in 2025 driven by banks, tracking rising global trend

[SINGAPORE] Share buybacks in Singapore surged 62.3 per cent year on year in 2025 to reach US$1.5 billion, as global buybacks hit a record high, a study by US investment management firm Capital Group indicated.

This growth in Singapore was driven mainly by the banking sector, especially UOB which initiated a large programme in early 2025, noted Capital Group.

Share buybacks are when companies use their cash to buy back their own shares from investors, potentially raising the company’s share price in the long run.

Banks were also a key contributor to record dividends in Singapore for 2025. That year, dividend payouts hit a US$18.7 billion record high, buoyed by special dividends from banks, as well as larger payouts, according to Capital Group’s data.

The rising prevalence of share buybacks is not just a Singapore trend. Overall, 52 per cent of companies in an index of companies tracked by Capital Group repurchased shares in 2025 – up from 36 per cent in 2015 – although, it would vary by region and sector.

Jeik Sohn, Capital Group’s head of client group, Singapore and South-east Asia, said: “Share buybacks are no longer a US-centric phenomenon as they reached a record US$1.46 trillion in 2025, with 52 per cent of companies now running repurchase programmes, up from 36 per cent a decade ago.”

“Buybacks can be an efficient way to return surplus cash to investors once investment needs and balance sheets are funded,” he said. “When priced and timed well, buybacks can meaningfully enhance shareholder outcomes.”

Companies in the US were the largest contributor, accounting for 71 per cent of global share buybacks. On the other end, European companies totalled just 10.8 per cent of global buybacks.

Capital Group said that Singapore was among the countries with the fastest growth in buybacks, at 62.3 per cent, together with Japan at 15.3 per cent and France at 44.4 per cent.

The value of global buyback activity rose in value by 123 per cent in the same period, exceeding dividend growth of 98 per cent.

Globally, the financials sector accounted for more than a quarter of 2025’s buybacks – bouncing 23.1 per cent to a record US$386 billion, while tech was up 18.5 per cent to a record US$312 billion.