Singapore big three banks to sustain strong dividends in 2026: report

Wealth management inflows and activities are expected to be robust.

Singapore’s big three banks are expected to log dividend yields of between 5%-6% in 2026, according to estimates by DBS Group Research.

DBS’ dividend yield is expected to be at 6.1% in FY2026F, whilst OCBC and UOB’s are at 5.4%, respectively.

Fund inflows are expected in the banking sector, with the second EQDP fund deployment into 2026.

“We expect cumulative inflows into Singapore, ongoing since 2024, to persist through 2026. Operating expenses control will likely be stringent to manage FY26F net profit,” DBS Group Research wrote in a report published on 8 December 2025.

The banks’ wealth management inflows and activities are expected to be robust throughout the year. DBS and OCBC’s assets under management (AUMs) grew by 18% each in Q3 2025, whilst UOB’s grew by 8%.

However, UOB’s asset quality issues may not be over, DBS Group Research warned. New nonperforming asset (NPA) formation averaged S$556m over the last four quarters, significantly higher than their peers, the report warned.

Meanwhile, OCBC’s stock has outperformed peers, the report said.

“We believe a potential re-rating is in the works should management unveil a clear capital return commentary on a forward-looking basis, with upside from the current 50% dividend payout ratio policy,” DBS Group Research wrote.