2Q26 preview: Wealth momentum, improving growth and earnings upgrades

Research evidence excerpt

2Q26 preview: Wealth momentum, improving growth and earnings upgrades

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Banks - Singapore

2Q26 preview: Wealth momentum,

improving growth and earnings upgrades

Earnings Preview

Expectations remain skewed to the upside 20 July 2026

Equity2Q26 results to be announced by DBS on 6 Aug, OCBC and UOB on 7 Aug.

ASEAN | Singapore

We expect a broadly solid 2Q26, with resilient NII, supportive fee income and benign Banks

asset quality. NIMs are likely to decline modestly (c.3–5bp QoQ) as lower asset yields

continue to reprice through the books. However, headwinds appear increasingly Sukriti Bansal >>

Research Analyst

manageable, with stronger loan growth, and a firmer rates backdrop helping offset part Merrill Lynch (Singapore)

of the impact. Markets remained constructive throughout the quarter, supporting wealth +65 6678 0454

sukriti.bansal@bofa.com

and treasury income.

Aiden Chionh >>

Our key focus remains the changing earnings mix of Singapore banks. Wealth Merrill Lynch (Singapore)

management is becoming a larger and more durable contributor to earnings, reducing +65 6678 5539 aiden.chionh2@bofa.com

reliance on traditional lending income and supporting a gradual re-rating of the sector.

At the same time, loan growth trends have improved, and rates are beginning to

stabilize, which should support a more constructive earnings outlook into 2H26. Exhibit 1: PO summary

9-22% total return for Buy-rated SG banksBeyond the quarter itself, the setup for earnings revisions remains positive. While

guidance upgrades could emerge as early as 2Q26, management teams tend to be PO Pot. Yld P/B P/E

conservative, and a formal upward revision may ultimately be a 3Q26 event. S$ upside 26E 26E 26E

DBS (Buy) 75.0 4% 4.6% 2.9 18.0