After 10% dip in Q1 profits, local lenders bank on rising rates to boost margins

Singapore’s banking trio logged declines in net profits for the first quarter. But their loans and net interest income rose, offering hopes of increasing profitability in the coming quarters.

On Friday (Apr 29), DBS , OCBC and UOB each reported a 10 per cent fall in net profit for the quarter. Wealth and other non-interest income were the biggest drags, no thanks to market volatility amid geopolitical tensions.

The weaker earnings were also partly attributable to a high base effect - the trio had kicked off Q1 of 2021 with a stellar quarter on stronger fee income and lower credit costs, following a pandemic-struck 2020.