- Across the Singapore banks, exposures to Middle East and private credit sector are not material. We believe some banks may take the opportunity to put through general provisions on the back of macroeconomic variable assumptions changes, to further strengthen their provisions buffer.
- - Read this at SGinvestors.io -
Wealth management driving Singapore banks’ FY26F growth.
- In early 2026, wealth management momentum remained strong. However, the outbreak of the Middle East conflict turned markets choppy and risk-off sentiment returned, which may have put some pressure on investment activities and AUMs towards end-1Q26. Yet as short-term S$ rates continue to be anchored by flush liquidity, the uncertainties in the Middle East may be driving more inflows into Singapore, which may bolster net new monies.
- Across the banks, DBS previously guided for mid-teens growth in wealth management, while OCBC guided for double-digit growth in non-interest income (primarily driven by wealth management fees). We believe 1Q26 performance should track prior expectations.
Volatility may benefit trading and markets business.
- - Read this at SGinvestors.io -
- We are positive on both customer and non-customer trading income on the back of heightened volatility, off a low base during 4Q25.
Rates in focus again; further downside to short-term S$ rates appear unlikely.
- Read more at SGinvestors.io.
