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2 clusters · 4 sources · 3 days · First seen · Last updated

Singapore banking sector growth outlook

Overview

Major Singaporean banks are projected to experience growth in net interest margins (NIMs) through 2027. Analysts indicate that rising Singapore dollar interest rates, which increased from 1 per cent at the start of the year to approximately 1.4 per cent by late September, will benefit local lenders.

UOB is identified by Macquarie Equity Research as having the highest upside potential due to its high leverage to Singapore dollar rates and valuation discount. DBS is noted for strong capital management and a return on equity exceeding 18 per cent, with projections suggesting its NIM could rise to 2.01% by 2027. OCBC is highlighted for its momentum in wealth management, with a forecasted NIM of 1.87% by 2027.

All three major banks maintain stable non-performing loan ratios, with DBS and OCBC reporting ratios at or below 1% during the first half of 2026.

Entities

OCBC Bank · DBS Bank · Singapore · Macquarie Equity Research · Malaysia

Timeline

  1. [BUSINESS] 2 sources
    Singapore banks poised to benefit from rising interest rates

    Singaporean banks, particularly UOB, are expected to benefit from rising interest rates, according to Macquarie Equity Research, which favors UOB for its valuation and leverage.

  2. [BUSINESS] 2 sources
    Singapore banks projected to see rising margins through 2027

    Singaporean banks DBS and OCBC are expected to see rising margins and wealth management growth, while OCBC forecasts Malaysia's fiscal deficit will remain at 3.6% of GDP through 2027.

Sources

asianbankingandfinance.net · drwealth.com · thesun.my · toray.co.jp