SINGAPORE BANKS 2Q26 preview: Stable sequentially, outlook more positive on higher rates and robust WM

Research evidence excerpt

SINGAPORE BANKS 2Q26 preview: Stable sequentially, outlook more positive on higher rates and robust WM

Equity Research

17 July 2026 | 9:35PM SGT

SINGAPORE BANKS

2Q26 preview: Stable sequentially, outlook more positive on higher

rates and robust WM

Outlook improving on NII with supportive WM momentum Melissa Kuang, CFA

+65-6889-2869 |

We raise our EPS forecasts by 4%/8%/6% for FY26E–28E as the outlook for melissa.kuang@gs.com

Goldman Sachs (Singapore) Pte

Singapore banks has become more constructive and are now 1%/5%/2% above

Wayne WangVisible Alpha Consensus Data for FY26-28E. Since 1Q26 results, the rates backdrop +65-6889-2866 |

has improved meaningfully, with Fed Funds Futures now implying a Fed hike in wayne.q.wang@gs.comGoldman Sachs (Singapore) Pte

Dec‑26 versus expectations of no further rate moves previously. Higher HIBOR, a

steeper yield curve and continued strength in system loan and deposit growth

together support a better NII outlook than previously anticipated. Reflecting this, we

raise our 2026‑28 NII forecasts by c.3‑8% across the sector and see scope for banks

to become more positive on their NII guidance in the coming quarters. At the same

time, wealth management momentum remains robust. SGX and HKEX ADT increased

6% and 5% qoq, respectively, while market conditions remained supportive, aided

by continued strength in the STI and S&P 500. IPO activity was also healthy, while

management commentary continues to point to resilient NNM trends and wealth

activity despite recent changes to China’s cross‑border regulations.

Stable sequentially, robust YoY growth supported by fees

Singapore banks will report 2Q26 results starting with DBS on 6 Aug, followed by

OCBC and UOB on 7 Aug. We expect earnings to remain broadly stable qoq,