Singapore banks’ Q3 trading income falls as lending holds up
Non-performing loan ratios at DBS, OCBC and UOB each declined by 0.1 percentage point, according to UOB Kay Hian.
Lending and wealth management helped sustain business at DBS, OCBC and UOB in Q3 2026, but lower income from trading and investments put pressure on earnings, according to UOB Kay Hian.
In a report dated 10 November, UOB Kay Hian analyst Jonathan Koh said DBS’ markets trading income dropped 68% from the preceding quarter. OCBC recorded a 33% quarterly decline in net trading income, while UOB’s other non-interest income decreased 41%.
OCBC’s quarterly performance was in line with the brokerage’s expectations, whereas DBS fell slightly short. Koh said wealth management continued to drive growth, although investment activity at both banks slowed compared with the previous quarter.
Asset quality improved at all three lenders, Koh said. The brokerage expects rising Singapore Overnight Rate Average (SORA), healthy demand for lending and inflows into wealth management to support earnings growth at the banks.
