The three Straits Times Index banks—DBS Group Holdings, Oversea-Chinese Banking Corporation, and United Overseas Bank—have reported a combined net interest income (NII) of S$8.302b for the third quarter of 2026. This marks the 16th consecutive quarter where their combined NII has exceeded S$8b, reflecting a 2% increase from the previous quarter.
Despite the steady NII, the banks experienced a significant decline in non-interest income (NOII), which fell by 18.5% quarter-on-quarter to S$4.657b. This drop was attributed to reduced trading, investment, and insurance income, alongside the absence of one-off divestment gains. However, customer-related income, such as treasury customer sales, remained robust.
All three banks reported improvements in their non-performing loan (NPL) ratios, with DBS at 0.9%, OCBC at 0.8%, and UOB at 1.5%. Wealth management metrics also reached new highs, with DBS reporting record assets under management (AUM) and UOB achieving record net fee income.
Analysts are now focusing on the outlook for non-interest income, particularly whether wealth-fee growth can meet expectations for the financial year 2027. The broader banking industry in Singapore continues to show growth, with loans and deposits rising in the third quarter.
Looking ahead, DBS anticipates mid-single-digit income growth in 2027, supported by its loan pipeline and structural growth in wealth management. OCBC has upgraded its guidance, expecting low-double-digit loan growth and at least mid-single-digit total-income growth for the year.
