Singapore banks beat net profit estimates and outperform in returns

Non-interest income did the heavy lifting whilst wealth remains a swing factor, says RHB.

Singapore banks beat Q2 2026 net profit estimates and outperformed regional peers in terms of total returns.

The three banks—OCBC, DBS, and UOB—have posted year-to-date returns of around 44%, outperforming regional banking peers as well as broader benchmark market index, said RHB’s Singapore Research team in an 18 August report.

Non-interest income did heavy lifting, with sector-wide income jumping 11% quarter-on-quarter and 28% year-on-year.

However, net interest margin (NIM) fell by 5% to 1.78%.

Wealth remains a swing factor, RHB said, with continued net money inflows into Singapore underpinning fee and treasury customer sales income.

DBS and OCBC lead non-interest income earnings, and led the sector’s outperformance in terms of returns.

“On the other hand, UOB has been a laggard – possibly over a combination of asset quality concerns and relatively weaker asset quality metrics as well as earnings momentum, coupled with a more downbeat fee income outlook for 2026 during the recent August briefing,” RHB wrote.