DBS and OCBC face weaker Q1 profits despite wealth gains

Both are expected to report growth in treasury customer sales.

DBS and OCBC are expected to log slightly lower net profits in Q1 2026 compared to the same period last year, according to estimates from UOB Kay Hian (UOBKH).

The two Singapore-headquartered banks will see mild net interest margin (NIM) compression and growth in their wealth management businesses, UOBKH analyst Jonathan Koh wrote in a 16 April report.

DBS’ net profit is estimated to come at S$2.83b, lower by 2% year-on-year (YoY) but 25% higher than in Q4 2025.

OCBC, meanwhile, is expected to log a net profit of S$1.79b, lower by 5% YoY but 3% higher than in Q4.

DBS is noted to have seen a healthy growth in treasury customer sales during the first three months of the year.

“We expect seasonally stronger net trading income in [Q1 2026] due to healthy growth in treasury customer sales and trading losses incurred in Q4,” Koh said.

OCBC is also expected to see growth in treasury sales. “Growth in treasury customer sales was supported by both corporate customers and high net worth individuals,” he said.

However, OCBC’s insurance contributions are expected to decline by 35% YoY to S$200m due to mark-to-market losses for its equity and fixed income portfolios.