Singapore Banks: 2Q26 results preview

Research evidence excerpt

Singapore Banks: 2Q26 results preview

20 July 2026

Equities

Commercial Banks Singapore Banks

2Q26 results preview Singapore

◆ DBS and OCBC to see continued WM strength Wai Fai Kok*, CFA

Analyst, ASEAN Financials

◆ We remain cautious on UOB’s asset quality The Hongkong and Shanghai Banking Corporation

Limited, Singapore Branch

wai.fai.kok@hsbc.com.sg

◆ Prefer OCBC (Buy) > DBS (Hold) > UOB (Hold) +65 66589976

WM to drive 2Q earnings ─ We expect Singapore banks to deliver 3-10% y-o-y * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

not registered/ qualified pursuant to FINRA regulations

earnings growth in 2Q26, with wealth management (WM) fees as the key driver. We

see continued momentum in DBS (+44% y-o-y) and OCBC (+36%), while UOB (+22%)

should see a pick-up from a low base last year. For treasury customer income (also

WM-related), we expect OCBC to outpace peers. For a deeper dive into WM trends

and drivers, see our initiation report (Singapore Banks: The wealth race, 15 July 2026).

Easing NIM pressure ─ We expect NIM pressure to ease in 2Q, supported by flattish

q-o-q moves in key benchmark rates. We forecast 2–5bp NIM compression q-o-q

(vs 2–10bp in 1Q). This should translate into a smaller y-o-y decline in NII of 2–3% in

2Q (vs 4–5% in 1Q).

Credit costs ─ We expect limited change in provisioning trends for DBS (flattish) and

OCBC (lower) given their strong buffers. We also see little urgency for general

provisions (GP) write-backs amid a volatile macro backdrop. For UOB, 2Q credit

costs could tick higher due to its less pre-emptive stance in 1Q and ongoing

weakness in Hong Kong commercial real estate exposure. We previously highlighted

that higher HIBOR is a double-edged sword for UOB (see Waiting for the next

catalyst, 15 July 2026).