DBS, OCBC, UOB fans need to be selective given their diverging performance metrics
Singapore banking trio face a growing earnings divide as funding costs cloud their 2027 outlook
[SINGAPORE] Investors should be more selective when investing in the Singapore banks, given the widening performance gap between DBS , OCBC and UOB in the third quarter of 2026, analysts said.
Higher funding costs weighed on the local banks’ Q3 earnings, even as analysts expect margin recovery and the impact of asset repricing to be uneven across the trio.
Jefferies analyst Joanna Cheah said: “(The widening performance gap) highlights how differences in funding franchise strength, balance sheet management and business mix are increasingly differentiating earnings, rather than the interest rate environment alone.”
