Wealth flows, Asean momentum to anchor DBS, OCBC and UOB as lower rates loom in 2026: analysts
Asset-quality trends remain an area to watch, but banks have likely made pre-emptive provisions for such risks
[SINGAPORE] Singapore’s three local banks exited FY2025 on a firm footing, as stronger fee and wealth income helped offset pressure from lower interest rates, while provisioning buffers kept asset quality broadly stable heading into 2026.
With further rate cuts expected to weigh on margins in FY2026, attention is turning to Asean loan growth and sustained wealth inflows as the next drivers of performance, even as asset-quality trends remain an area to watch.
This comes as intra-Asean trade and investment flows are expected to remain a medium-term pillar despite tariff-related volatility, said analysts.
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