Singapore’s banking sector is projected to maintain steady profitability in 2026, matching 2025 performance levels as strong growth across wealth management franchises offsets ongoing macroeconomic adjustments, according to a commentary published by Fitch Ratings.

The credit rating agency highlighted that performance across Singapore’s three major lenders—DBS, OCBC, and UOB—will be anchored by persistent wealth inflows, stabilizing net interest margins, and muted credit impairment charges. Strong second-quarter wealth management revenues have already helped compensate for narrowing interest margins caused by lower benchmark rates, with assets under management scaling to record highs alongside double-digit fee income expansion.

Operational resilience is further reinforced by sound fundamental metrics across the industry. Asset quality continues to hold firm with stable non-performing loan ratios, while funding and liquidity profiles remain robust—even as depositors increasingly transition current and savings account balances into higher-yielding wealth solutions. Although common equity tier 1 (CET1) capital ratios have experienced slight moderation due to heightened credit expansion and generous shareholder payout distributions, overall capitalization across all three institutions remains exceptionally strong.

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