Singapore Banks: 1H26 Preview - UOB D/G to EW

Research evidence excerpt

Singapore Banks: 1H26 Preview - UOB D/G to EW

Idea

July 30, 2026 11:00 AM GMT

Morgan Stanley Asia (Singapore) Pte.+MSingapore Financials | Asia Pacific Nick Lord

Equity Analyst

Singapore Banks: 1H26 Preview - Nick.Lord@morganstanley.comSelvie Jusman, CFA +65 6834-6746

Selvie.Jusman@morganstanley.com +65 6834-6517

UOB D/G to EW Aitong Li

Research Associate

Aitong.Li@morganstanley.com +65 6834-6295

We raise Singapore banks' earnings to reflect yield-curve mark-

to-market, and preview 1H/2Q earnings. Following the sector's

recent share price move, UOB no longer offers deep value,

downgrade to EW.

ASEAN Financials

Key Takeaways Asia Pacific

Industry View In-Line

2Q results: SORA drag persists, offset by strong non-NII. Costs and credit quality

What’s Changed

non-issues, except at UOB where new NPAs may pick up. DBS Group Holdings

(DBSM.SI) From To

We revise up 2027/28e EPS for all three banks to reflect yield-curve mark-to-

Price Target S$63.00 S$65.40

market. Our forecasts assume SORA at 165bps by end-2028e.

Oversea-Chinese Banking

Valuations look full for all Singapore banks, and we believe HK international Corp (OCBC.SI) From To

Price Target S$24.08 S$24.63

banks (HSBC/Standard Chartered) are a better way to play wealth trends.

United Overseas Bank

UOB to EW. UOB faces peer-relative issues, but valuation had provided support. (UOBH.SI) From To

Rating Overweight Equal-weight

The recent share-price move means that is no longer the case.

Price Target S$43.80 S$46.70

What to expect in 2Q: We see NIMs declining across all three banks as lower SORA

flows through asset yields, driving YoY NII declines. QoQ NIM trends are better, but

Exhibit 1 : Result Dates

still fall. Loan growth and rising SORA should help in 3Q. Despite these pressures,