- Singapore banks performed well with 5%-10% gains in Jan 26; we anticipate further legs in the rally as dividends and stable capital returns in S$ remain attractive. We continue to anticipate largely stable credit costs during 4Q25, although UOB’s credit costs are still expected to be elevated at 25- 30bps compared to peers.
- - Read this at SGinvestors.io -
- Increased deployment of the first batch of Equity Market Development Programme (EQDP) funds, alongside the fresh deployment of the second batch of funds, represents continued tailwinds for the sector.
S$ short-term rates bottoming out
- S$ short-term rates bottoming out and did not decline further even with Fed cuts; longer term rates face upward pressures. DBS economists continue to expect the 3M SORA OIS to rebound from lows of ~1.1% in early Dec 2025 to hold at ~1.25% through 1Q-4Q26.
- - Read this at SGinvestors.io -
- Longer term rates are under upward pressure as investors rethink the “sell America/rebalancing” trade.
A turning point in NIM downtrend.
- Read more at SGinvestors.io.
Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.
Rui Wen LIM DBS Group Research | https://www.dbs.com/insightsdirect/ 2026-01-29
More reports on banking & finance sector:
Analyst Reports on Singapore Banking & Finance Sector
Read also:
Analyst Reports on DBS Group
Analyst Reports on OCBC Bank
Analyst Reports on United Overseas Bank (UOB)
