OCBC and UOB to reverse year-long NIM slide in Q4

DBS Group Research forecasta a quarter-on-quarter margin improvement for two of the big three.

Singapore banks’ non-interest incomes (NOII) are expected to report a quarterly decline for the Q4 2025 period, according to a report by DBS Group Research’s equity team.

Seasonal impacts led to weaker trading and wealth management fees during the quarter, according to a 29 January 2026 report.

Of the big three, UOB is expected to see a reprieve in fee-related incomes thanks to the normalising of redemption costs in its Thailand cards business in Q4, following a surge in Q3.

Loan related fees are also expected to be lower in Q4 on the back of “softer” loan growth.

OCBC and UOB are expected to report net interest margins (NIMs) improvements quarter-on-quarter, reversing the decline observed throughout 2025, according to DBS Group Research.

Credit costs are likely to be stable in Q4, although UOB’s are expected to remain elevated at 25-30 basis points compared to its peers.

In a separate report by UOB Kay Hian (UOBKH), Singapore banks are expected to report stable financial performance for Q4 2025 due to factors such as stabilising profit margins, and steady investment fee income.