Singapore’s trio of listed banking giants—DBS Group Holdings, Oversea-Chinese Banking Corporation (OCBC), and United Overseas Bank (UOB)—managed a combined total of roughly $1.17 trillion (S$1.5 trillion) in loans and deposits, with a cumulative market capitalization of around $327.6 billion (S$420 billion) in the second quarter of 2026.
According to a market update from the Singapore Exchange (SGX), the combined STI weight of these three institutions expanded to roughly 20% of the FTSE ASEAN All-Share Index, up sharply from around 9% at the end of 2019.
Record Revenue and Income Drivers
For Q2 2026, the trio achieved a record combined total income of $10.8 billion (S$13.86 billion), driven by $6.3 billion (S$8.14 billion) in net interest income (NII) and a record $4.5 billion (S$5.72 billion) in non-interest income (NOII).
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Non-Interest Income (NOII): Total NOII grew to make up 41% of total combined income in Q2 2026, up from 31% in Q2 2023.
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DBS: Reported record total income, driven by all-time highs in wealth management fees, transaction service fees, and treasury customer sales.
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OCBC: Recorded a 51% year-on-year surge in NOII, boosted by record wealth management fees, customer flow income, and stronger insurance contributions.
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UOB: Saw wealth management income increase by 16%, with high-net-worth assets under management (AUM) expanding 7% year-on-year to $159.1 billion (S$204 billion).
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Net Interest Income (NII): Combined NII reached $6.3 billion (S$8.14 billion), marking the 15th consecutive quarter where combined NII exceeded S$8 billion. NII accounted for 59% of overall total income during the period.
Navigating Lower Benchmark Rates and Market Rotation
While benchmark rates like SORA and regional peers have eased from their 2023–2024 peaks—compressing net interest margins—the banks mitigated these yield pressures through balance sheet expansion, asset growth, and proactive hedging:
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DBS leveraged balance sheet growth and strategic hedging to buffer against lower rates, with year-to-date customer loans rising 5%, led by non-trade corporate lending.
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OCBC offset rate drags through a 12% increase in average assets, pushing customer loans up 13% year-on-year (in constant currency) to $357 billion (S$459 billion).
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UOB relied on funding cost management, balance sheet optimization, and loan growth, with gross customer loans reaching $93.6 billion (S$120 billion).
Despite the strong operating performance, a report by DBS highlighted that the stock market rally has become narrow, with the three banks and SGX accounting for 95% of the Straits Times Index’s (STI) year-to-date gains and over 100% of gains following recent Middle East geopolitical friction. DBS noted that with bank valuations looking stretched and post-dividend momentum fading, capital may rotate into alternative H2 2026 themes, including value-unlocking plays, EQDP beneficiaries, and selective mid-cap growth equities. Looking ahead, CGS International noted that Singapore banks could see renewed NII support in FY2027 if US interest rates remain elevated.
Credit Quality and Balance Sheet Health
Asset quality remained resilient across the three banks through Q2 2026, backed by strong non-performing loan (NPL) metrics and robust provision coverage:
Singapore’s trio of listed banking giants—DBS Group Holdings, Oversea-Chinese Banking Corporation (OCBC), and United Overseas Bank (UOB)—managed a combined total of roughly $1.17 trillion (S$1.5 trillion) in loans and deposits, with a cumulative market capitalization of around $327.6 billion (S$420 billion) in the second quarter of 2026.
According to a market update from the Singapore Exchange (SGX), the combined STI weight of these three institutions expanded to roughly 20% of the FTSE ASEAN All-Share Index, up sharply from around 9% at the end of 2019.
Record Revenue and Income Drivers
For Q2 2026, the trio achieved a record combined total income of $10.8 billion (S$13.86 billion), driven by $6.3 billion (S$8.14 billion) in net interest income (NII) and a record $4.5 billion (S$5.72 billion) in non-interest income (NOII).
-
Non-Interest Income (NOII): Total NOII grew to make up 41% of total combined income in Q2 2026, up from 31% in Q2 2023.
-
DBS: Reported record total income, driven by all-time highs in wealth management fees, transaction service fees, and treasury customer sales.
-
OCBC: Recorded a 51% year-on-year surge in NOII, boosted by record wealth management fees, customer flow income, and stronger insurance contributions.
-
UOB: Saw wealth management income increase by 16%, with high-net-worth assets under management (AUM) expanding 7% year-on-year to $159.1 billion (S$204 billion).
-
-
Net Interest Income (NII): Combined NII reached $6.3 billion (S$8.14 billion), marking the 15th consecutive quarter where combined NII exceeded S$8 billion. NII accounted for 59% of overall total income during the period.
Navigating Lower Benchmark Rates and Market Rotation
While benchmark rates like SORA and regional peers have eased from their 2023–2024 peaks—compressing net interest margins—the banks mitigated these yield pressures through balance sheet expansion, asset growth, and proactive hedging:
-
DBS leveraged balance sheet growth and strategic hedging to buffer against lower rates, with year-to-date customer loans rising 5%, led by non-trade corporate lending.
-
OCBC offset rate drags through a 12% increase in average assets, pushing customer loans up 13% year-on-year (in constant currency) to $357 billion (S$459 billion).
-
UOB relied on funding cost management, balance sheet optimization, and loan growth, with gross customer loans reaching $93.6 billion (S$120 billion).
Despite the strong operating performance, a report by DBS highlighted that the stock market rally has become narrow, with the three banks and SGX accounting for 95% of the Straits Times Index’s (STI) year-to-date gains and over 100% of gains following recent Middle East geopolitical friction. DBS noted that with bank valuations looking stretched and post-dividend momentum fading, capital may rotate into alternative H2 2026 themes, including value-unlocking plays, EQDP beneficiaries, and selective mid-cap growth equities. Looking ahead, CGS International noted that Singapore banks could see renewed NII support in FY2027 if US interest rates remain elevated.
Credit Quality and Balance Sheet Health
Asset quality remained resilient across the three banks through Q2 2026, backed by strong non-performing loan (NPL) metrics and robust provision coverage:
| Bank | NPL Ratio | Allowance / NPA Coverage | Coverage (With Collateral) |
| DBS | 1.0% | 130% | 196% |
| OCBC | 0.9% | 163% | — |
| UOB | 1.6% | — | 306% |
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