ASEAN Banks: Earnings headwinds easing across the region

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ASEAN Banks: Earnings headwinds easing across the region

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Banks - ASEAN

ASEAN Banks: Earnings headwinds easing

across the region

Industry Overview

Easing margin pressures, growth and capital returns 23 July 2026

ASEAN bank performance has diverged in 2026, with Singapore (+31%) and Thailand Equity

(+27%) outperforming, while Indonesia (-16%) lagged. The first half was dominated by ASEAN

concerns around growth, inflation and rates, compounded by trade uncertainty, Middle Banks

East tensions and Indonesia-specific liquidity pressures. As these headwinds begin to Sukriti Bansal >>

ease and rate expectations stabilize, we believe the sector is entering a more Research Analyst

constructive phase. Margin pressures are becoming more manageable, growth remains Merrill+65 6678Lynch0454(Singapore)

resilient, asset quality is holding up and capital returns are playing a larger role in the sukriti.bansal@bofa.com

investment case. Sarachada Sornsong ^^^

Research Analyst

Kiatnakin Phatra Securities

sarachada.sorn@kkpfg.comASEAN Banks – Key Themes

Margin pressure becoming more manageable - Following a year of declining rates Julian Roxas ^^

and NIM compression, we believe margin headwinds are becoming more manageable Philippine Equity Partners

across ASEAN. Singapore rates are stabilizing, Thailand appears close to a NIM trough julian.roxas@pep.com.ph

and Indonesia may be nearing peak funding-cost pressure Aiden Chionh >>

Merrill Lynch (Singapore)

Growth remains resilient - Loan demand remains constructive across most ASEAN aiden.chionh2@bofa.com

markets. Philippines continues to benefit from a strong growth backdrop, Indo is

supported by corporate lending, while SG is seeing improving business activity.