Singapore’s three largest banks are projected to deliver dividend yields of around 5%–6% in 2026, based on estimates from DBS Group Research.
DBS is forecast to post a dividend yield of 6.1% in FY2026, while OCBC and UOB are each expected to offer yields of about 5.4%.
The banking sector is also expected to see continued fund inflows, supported by a second round of EQDP fund deployment extending into 2026.
DBS Group Research expects capital inflows into Singapore, which began in 2024, to continue through 2026, adding that banks are likely to maintain tight control over operating expenses to protect FY2026 net profit, according to a report published on 8 December 2025.
Wealth management activity and inflows at the banks are expected to remain strong. In the third quarter of 2025, assets under management at DBS and OCBC each rose 18%, while UOB recorded an 8% increase.
That said, DBS Group Research cautioned that UOB’s asset quality challenges may persist. Average new non-performing asset formation reached S$556m over the past four quarters, notably higher than levels seen at rival banks.
OCBC, meanwhile, has outperformed its peers in share price performance. The report noted that the stock could be re-rated if management provides clearer, forward-looking guidance on capital returns, with potential upside beyond its current 50% dividend payout ratio policy.
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