DBS, UOB Project Loan Growth Offsets Funding Costs in Q3
DBS and UOB project resilient net interest income for Singapore lenders in the third quarter, even as higher deposit expenses pressure margins and mortgage rates climb above 2%.
Wealth Management and Bond Yield Effects
While the outlook for interest income improves, higher bond yields could impact some banks' earnings. DBS indicates OCBC may face greater exposure through its insurance earnings and non-customer trading income.
Details
This follows a rise of over 80 basis points in 10-year US Treasury yields and 43 basis points in Singapore government bond yields during 3Q26. UOB expects wealth management growth to moderate but maintain its upward trajectory, a view DBS largely shares, except for UOB's strong second quarter.
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