Singapore banks’ 2026 profitability lifted by wealth fee growth

The three banks’ capitalisation remains strong, but CET1 ratios are declining.

Singapore banks’ profitability in 2026 is expected to remain broadly in line as in 2025, supported by the growth of their wealth management franchises.

Profitability will be supported by continued wealth flows, easing margin pressure, and low impairment charges, Fitch Ratings said in a commentary published on 14 August.

The three banks—DBS, OCBC, and UOB—reported strong wealth management income for Q2, which offset net interest margin pressure from lower interest rates.

“Assets under management reached record levels, fee income rose by double digits and asset quality remained benign, with non-performing loan ratios broadly stable,” Fitch said.

The three banks’ capitalisation also remains strong, Fitch said, although it noted that common equity tier 1 (CET1) ratios are declining due to sizable shareholder returns and stronger loan growth.

Fitch said that their funding and liquidity also remain sound, although there is some moderation in current and savings account ratios as depositors shift into wealth products.