Singapore’s top three lenders—DBS, OCBC, and UOB—are projected to post stagnant net interest income (NII) for full-year 2026, though their fee revenue and credit costs will likely follow contrasting paths, according to a report by CreditSights (Fitch Solutions). DBS and OCBC are on track for double-digit gains in fee and non-interest income (NOII), whereas UOB faces a steeper climb, needing to push harder to achieve even low single-digit growth. However, the dynamic flips regarding risk management, as UOB is anticipated to maintain lower credit costs relative to its peers while DBS and OCBC are expected to see slightly higher provisions.

Despite the Singapore Overnight Rate Average (SORA) stabilizing after bottoming out in May, net interest margin (NIM) relief remains elusive for the sector, with all three institutions reporting narrowing margins in the second quarter. On the bright side, loan growth momentum strengthened across the board during Q2. Heightened wealth management activity also drove stronger net new money inflows and elevated wealth fees compared to the first quarter, though OCBC stood out as the sole bank to achieve quarter-on-quarter growth in overall net fee income.

Deposit performance across the three institutions varied noticeably throughout the second quarter. UOB successfully rebounded from a flat performance in Q1, while OCBC maintained solid deposit accumulation despite a mild deceleration. Meanwhile, DBS experienced a slowdown in deposit growth, largely driven by clients redeploying cash holdings into investment opportunities.

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