Singapore Banks Many moving parts for the sector, tactical downgrade of DBS to Neutral

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Singapore Banks Many moving parts for the sector, tactical downgrade of DBS to Neutral

J P M O R G A N Asia Pacific Equity Research

10 June 2026

Singapore Banks

Many moving parts for the sector, tactical downgrade of

DBS to Neutral

Wealth management, rates, asset quality, capital management and valuations are APAC Banks

ACin varying degrees of shift, which should weigh on the sector for the next few Harsh Wardhan Modi

months. On WM, the structural upside is intact, but the recent policy moves from (65) 6882-2450

China (link, link) could lead to slower NNMg in 2027 and onward, which should harsh.w.modi@jpmorgan.com

limit re-rating for now. Rates appear to be bottoming, with 3M SORA possibly J.P.J.P. MorganMorgan SecuritiesSecurities Singapore(Asia Pacific)PrivateLimited/Limited/J.P.

finding a floor closer to 1%. This is quite positive for revisions and a key driver of Morgan Broking (Hong Kong) Limited

the recent re-rating. Yet moves in SORA depend on Fed rates, flows into Singapore Daniel Andrew Tan, CFA

and SGD appreciation, which makes further revisions less clear. On AQ, EM (63-2) 8554-2413

ASEAN exposure is a source of small, but incremental risk, as well as parts of the danielandrew.o.tan@jpmorgan.com

J.P. Morgan Securities Philippines, Inc.

portfolio impacted by energy prices. On capital management, we seem to have

reached a degree of status quo across banks, which means this may not be as Manassaya Ploynumpol

(66-2) 684-2176

important a factor in stock price moves near-term. Finally, OCBC and DBS are lamai.ploynumpol@jpmorgan.com

trading close to multi-year-high PEs/PBs (UOB lower, but for a reason, we JPMorgan Securities (Thailand) Limited

believe). This combination of sector trends and valuations is creating conditions

for re-rating to take a pause.