Singapore's big 3 banks pivot to wealth as margins shrink

The banks eye growth in onshore, ASEAN, China and Hong Kong wealth.

Singapore’s big three banks are banking on wealth management to drive growth, with interest income and lending activity expected to decline in 2026.

The three banks have adopted different wealth strategies. DBS, for example, sees strong onshore wealth demand across its core operating markets and has been actively opening new wealth centres in Singapore, according to a report by CreditSights, a Fitch Solutions Service. 

OCBC, meanwhile, wants to capture wealth flows between ASEAN and China, and between Singapore and Hong Kong, whilst expanding affluent banking in Malaysia.

UOB remains focused on ASEAN and expects stronger growth to follow now that its integration of Citi’s consumer franchise in Malaysia, Thailand, Indonesia, and Vietnam is done, CreditSights noted in a May 2026 report.

The three banks’ performances diverged during the quarter. OCBC, for example, was the only bank to increase general provisions for macro uncertainty related to the Middle East conflict.

UOB was the only bank to report a decline in net profit on the back of a surprising decline in fee income, as well as muted loan and deposit growth.

DBS saw net profit rise 1.1% but also saw margin pressures, CreditSights said.

For FY2026, the three banks are expected to face a slight decline in net interest income amidst modest net interest margin (NIM) contraction and low-to-mid single-digit loan growth, the report said.

Meanwhile, the three banks may benefit from changes in capital and investment flows brought about by the Middle East conflict thanks to Singapore’s “safe haven” status, according to an earlier report by CreditSights.