Singapore’s three largest banks are projected to report slight compression in net interest margins (NIMs) alongside exceptional growth in wealth management for their upcoming second-quarter 2026 financial results, according to analysis from UOB Kay Hian (UOBKH). While DBS is forecast to post flat net profit growth year-on-year, OCBC’s net profit is expected to climb 7% compared to the same period in 2025. On a sequential basis, however, both institutions are anticipated to see profits decline from the first quarter of the year, noted UOBKH analyst Jonathan Koh.
DBS is expected to see its net interest margin drop by 4 basis points to 1.85%, driven by a lower interest rate environment. Conversely, its wealth management revenue is projected to surge 37% year-on-year to S$890 million. The analyst suggested that both DBS and OCBC benefited from improved investor sentiment among high-net-worth individuals, which was buoyed during the quarter by news of a potential peace deal between the US and Iran. Additionally, DBS is expected to post an 8% increase in transaction services fees, pushing its total fee income to double-digit year-on-year growth.
Meanwhile, OCBC’s net interest margin is forecast to remain stable at 1.75%, though its net interest income will likely edge down 1.6% quarter-on-quarter. The bank’s total fee income is expected to jump 19% year-on-year to S$691 million, fueled by a 51% surge in wealth management fees to S$420 million as affluent clients shifted funds into investment products. Koh attributed this strong performance in part to the aggressive expansion of the bank’s relationship manager team during 2024 and 2025.
Furthermore, OCBC’s insurance division is projected to see a 55% year-on-year revenue increase to S$350 million. This boost is largely due to its subsidiary, Great Eastern, benefiting from mark-to-market valuation gains during the recent market rally in artificial intelligence and semiconductor stocks. The major lenders are scheduled to disclose their official earnings early next month, with DBS reporting on August 6, followed by OCBC and UOB on August 7.
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