DBS better at weathering lower benchmark interest rates.
- Banks suffered severe NIM compression as 3M Compounded SORA dropped 50bp, while 3M HIBOR collapsed 220bp in 2Q25. DBS’ NIM compression was relatively shallow at 7bp q-o-q to 2.05% in 2Q25, mitigated by balance sheet hedging. OCBC and UOB’s NIM compression was more pronounced at 12bp and 9bp q-o-q respectively to 1.92% and 1.91%. Thus, DBS’ net interest income expanded marginally by 1.5% y-o-y, compared with declines of 6.0% y-o-y for OCBC and 2.7% y-o-y for UOB.
UOB strengthened its deposit franchise.
- Read more at SGinvestors.io.
