Margin relief lifts outlook for DBS, OCBC and UOB, extending Singapore bank rally

[SINGAPORE] The three local banks may be nearing the end of the margin squeeze that has weighed on earnings over the past year, as interest rates stabilise and funding pressures ease, analysts said.

Ahead of the banks’ fourth-quarter results, sentiment remains largely positive on the sector, supported by resilient asset quality and steady capital returns, but analysts caution that clear growth drivers for the next stage of growth remain elusive.

The banking trio are set to release their fourth-quarter and full-year 2025 results in February, beginning with DBS on the 9th, then UOB on the 24th and OCBC on the 25th.