Singapore’s three largest banks reported a decline in trading and investment income during the third quarter of 2026, although lending activity and wealth management continued to demonstrate resilience, according to UOB Kay Hian (UOBKH).
OCBC’s third-quarter results were broadly in line with expectations, while DBS delivered earnings that were slightly below the brokerage’s forecasts.
“Loan growth and wealth management supported underlying business momentum, while weaker trading and investment income weighed on earnings,” said UOBKH analyst Jonathan Koh in a report published on November 10.
Asset quality improved across all three lenders, with non-performing loan (NPL) ratios declining by 0.1 percentage points at each bank, Koh noted.
The brokerage expects rising Singapore Overnight Rate Average (SORA) rates, sustained demand for loans and continued wealth management inflows to contribute to earnings growth.
Wealth management remained an important source of growth, although investment-related activity slowed sequentially at DBS and OCBC, according to Koh.
Trading-related income also weakened across the banking group. DBS recorded a 68% quarter-on-quarter (QoQ) decline in markets trading income, while UOB’s other non-interest income fell 41% and OCBC’s net trading income decreased 33% over the same period.
Despite the pressure on trading and investment earnings, Koh highlighted that Singapore’s banks could provide investors with a degree of protection against potential sovereign debt crises in developed economies.
Click here for more on Banking
