Key facts
- DBS reported a 1% year-on-year profit increase to S$2.82 billion for the quarter ending June 2025.
- UOB reported a 6% drop in quarterly profit to S$1.34 billion, while OCBC saw a 6% decline to S$2.34 billion.
- OCBC reported a record quarterly net profit of S$2.22 billion, up 22% from a year earlier, driven by strong non-interest income.
- UOB reported a 10% rise in second-quarter net profit to S$1.48 billion, with wealth management fees contributing significantly.
- All three major Singaporean banks are facing pressure from declining net interest margins due to easing interest rates.
Singapore's major banks have reported mixed financial results for the second quarter, with some experiencing profit declines due to weakening net interest income while others posted gains, bolstered by strong performance in wealth management and fee-based businesses.
DBS, Southeast Asia's largest bank, reported a 1% year-on-year profit increase to S$2.82 billion, exceeding consensus estimates, driven by robust lending and wealth management fees. Its total income rose 5% to S$5.8 billion.
In contrast, UOB and OCBC reported profit drops. UOB's quarterly profit fell 6% to S$1.34 billion, and OCBC's profit declined by 6% to S$2.34 billion, both impacted by lower net interest income. However, OCBC later reported a record quarterly net profit of S$2.22 billion, up 22% year-on-year, with significant growth in non-interest income including fees, trading, and insurance.
UOB also reported a 10% rise in its second-quarter net profit to S$1.48 billion, with its net fee income increasing by 5%, largely due to wealth management fees. Both OCBC and UOB saw their net interest margins decline.
The banks are navigating a complex macroeconomic environment characterized by uncertainty over inflation and interest rates, compounded by geopolitical tensions and new U.S. tariffs that could impact regional economic activity. Despite these challenges, bank executives expressed confidence in the long-term growth prospects of Southeast Asia, citing regional integration, trade diversification, and foreign direct investments.