Singapore banks projected to maintain profitability via wealth management growth

Singapore’s major banks—DBS, OCBC, and UOB—are expected to maintain profitability through 2026, driven largely by the growth of their wealth management franchises. According to Fitch Ratings, record levels of assets under management and double-digit growth in fee income are helping to offset net interest margin pressures caused by lower interest rates.

While capitalization remains strong, common equity tier 1 (CET1) ratios have seen a decline due to increased loan growth and significant shareholder returns. Additionally, the Monetary Authority of Singapore has implemented the Equity Market Development Programme, expanding its scope to S$6.5 billion this year, in an effort to boost investor participation and diversify the Singapore stock market beyond its heavy concentration in the banking sector.