DBS and OCBC lifted parts of their outlooks, while UOB turned more cautious on fee growth, underlining how lower rates are reshaping income across the sector.
Wealth still drives the numbers
DBS reported a 9% rise in second-quarter net profit to S$3.08 billion. OCBC posted a 22% increase to S$2.22 billion, while UOB lifted profit 10% to S$1.48 billion.
Wealth management remained the key support. DBS said wealth management income rose 16% in the first half to S$3.3 billion, and assets under management passed S$500 billion. The bank also said net fee income hit a record S$2.94 billion in the period.
OCBC also reported record wealth income of S$3.29 billion in the first half, up 27%. UOB’s wealth management income rose 16% year on year to S$717 million, helped by stronger demand across its main ASEAN markets.
This pattern matters for Singapore banks because wealth and fees are cushioning weaker lending margins. It also shows how the region’s rising affluent client base remains a durable earnings lever.
Guidance now points to a split second half
The outlook comments were more varied than the profit numbers. DBS raised its forecast for commercial-book non-interest income growth to the mid-teens. It also said full-year total income should exceed 2025 levels.
OCBC took a constructive line as well. It lifted its full-year loan growth forecast from mid-single-digit growth to a high single-digit to low double-digit range. However, its management also warned against assuming the Q2 pace will carry through unchanged.
UOB took a more guarded stance. It kept its full-year loan growth guidance at low single digits and its net interest margin forecast at 1.75% to 1.80%. But it cut fee-income growth guidance to the low single digits from high single digits previously.
That split suggests the earnings backdrop for Singapore banks is becoming more uneven. Wealth-linked revenue is still firm, yet not every lender is seeing the same pace of fee momentum.
China tax rules add a new watchpoint
A separate issue now on investors’ radar is China’s tightening scrutiny of offshore wealth. The changes cover offshore trusts and the taxation of overseas investment income.
OCBC said its private banking arm, Bank of Singapore, had not seen meaningful outflows. DBS said it was too early to judge the impact, while UOB said it saw no material first-instance effect.
The immediate takeaway is clear. The new rules have not yet disturbed client assets in a visible way. However, they may influence how wealth is booked, structured and serviced across Greater China over time.
For investors, the next signals will come from whether fee income keeps outpacing rate pressure, and whether wealth flows stay resilient into the third quarter.
