Singapore banks seen posting wealth surge but narrower margins in Q2

DBS’ and OCBC’s wealth management businesses are expected to post double-digit gains.

Singapore’s Big 3 banks are expected to report mild compression in net interest margins (NIMs) and “sterling” growth from wealth management in its upcoming Q2 2026 results, according to estimates from UOB Kay Hian (UOBKH).

Of the three banks, DBS is expected to report flat net profit growth, whilst OCBC's net profit will rise 7% compared to the same quarter in 2025. However, their Q2 profits will be lower than the previous quarter’s, said UOBKH analyst Jonathan Koh in a report published on 13 July.

DBS’ net interest income is expected to decline 4 basis points (bp) to 1.85% in part due to lower interest rates.

Contribution from its wealth management business is expected to rise 37% year-on-year (YoY) to S$890m in Q2. Both DBS and OCBC may have gained from HNW's more positive sentiments during the quarter following news of a potential peace deal between the US and Iran, the report said.

DBS’ fees from transaction services are likely to have grown 8%, whilst overall fee income may expand at a double-digit rate compared to a year earlier.

OCBC, meanwhile, should see its NIM remain “quite stable” at 1.75%, although net interest income is likely to decline by 1.6% quarter-on-quarter, Koh said. OCBC’s overall fee income is expected to have grown 19% YoY to S$691m.

Wealth management fees should register a 51% growth to S$420m, with OCBC’s high net worth (HNW) clients deploying funds into investment products.

“The expansion of its base of relationship managers undertaken in 2024 and 2025 also contributed to the spectacular growth,” Koh said.

Contribution from its insurance business is expected to expand 55% YoY to S$350m in Q2 2026, with Great Eastern possibly benefiting from mark-to-market gains due to the rally for artificial intelligence (AI) and semiconductor stocks, Koh said.

DBS is set to report its results on 6 August, followed by OCBC and UOB on 7 August.