Banks - Singapore: Banking on Wealth – Reframing the Singapore Banks Story; DBS to Buy

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Banks - Singapore: Banking on Wealth – Reframing the Singapore Banks Story; DBS to Buy

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Banks - Singapore

Banking on Wealth – Reframing the

Singapore Banks Story; DBS to Buy

Rating Change

Valuation premium ever more justified by wealth exposure 15 July 2026

Singapore banks have quietly transformed from predominantly spread lenders into Equity

diversified financial platforms, with wealth management now representing one of the ASEAN | Singapore

most important drivers of earnings growth and valuation support. Over the past decade, Banks

wealth AUM has compounded at 9-13% CAGR across DBS, OCBC and UOB, while wealth

income has generally grown in line with or faster than AUM. Today, wealth contributes SukritiResearchBansalAnalyst>>

c.20-25% of group income and an even larger share of incremental earnings growth. Merrill Lynch (Singapore)

+65 6678 0454

Unlike traditional banking businesses, WM benefits from structural tailwinds including sukriti.bansal@bofa.com

rising Asian affluence, increasing family-offices, wealth transfer and SG's growth as Aiden Chionh >>

Asia's preferred wealth booking center. We believe these warrant higher multiples than Research Analyst

Merrill Lynch (Singapore)

those historically assigned to core banking earnings. The sector is increasingly valued +65 6678 5539

not just on NIMs/loan growth, but also on the quality of its wealth franchise. aiden.chionh2@bofa.com

DBS – upgrade to buy on constructive momentum

We upgrade DBS to Buy and raise our PO to S$75. DBS has built the strongest wealth Exhibit 1: SG Banks POs and upside

SG Banks have total returns of 11-17%franchise among Singapore banks, with wealth AUM and income growing at 13% and

15% CAGR respectively over the past decade. The bank combines sector-leading PO Pot. Yld P/B P/E