Singapore’s three largest banks beat the Straits Times Index in the first half of 2026.
DBS Group Holdings returned 19.3%, Oversea-Chinese Banking Corporation 28.2% and United Overseas Bank 15%, while the SPDR STI ETF, which tracks the index, gained 13.1%.
Source: RSS · July 23, 2026 at 5:41 PM · AI-assisted report
SINGAPORE, 24 JULY 2026 —
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DBS Group Holdings returned 19.3%, Oversea-Chinese Banking Corporation 28.2% and United Overseas Bank 15%, while the SPDR STI ETF, which tracks the index, gained 13.1%.
All three banks are among the 30 constituents of the STI, yet each offset falling net interest margins by expanding non-interest income.
OCBC reported a record S$3.8 billion of total income in the first quarter of 2026, up 5% from a year earlier, even as net interest income fell 5% to S$2.2 billion. According to the bank, net interest margin narrowed 0.28 percentage points to 1.76%, while loans grew 9% on a constant-currency basis, cushioning the squeeze.
Non-interest income jumped 23% to S$1.6 billion, with wealth management fees up 34% and insurance income up 34% to S$409 million.
DBS posted a record S$5.95 billion of total income in the first quarter, 1% higher year on year. Its net interest margin fell 0.23 percentage points to 1.89%, cutting net interest income by 5% to S$3.49 billion. Non-interest income rose 10% to S$2.45 billion, driven by record wealth management fees of S$907 million.
Asset quality improved, with the non-performing loan ratio at 1%, and DBS raised its interim dividend to S$0.81 per share, including a capital return of S$0.15.
UOB’s net interest income fell 4% to S$2.3 billion in the first quarter as its margin compressed 0.18 percentage points to 1.82%. Non-interest income slid 12% to S$1.1 billion, with net fee income down 8% as investment banking and loan-related activity slowed.
The bank cited its recently completed Citi consumer banking integration across Indonesia, Malaysia, Thailand and Vietnam, which now serves 8.5 million retail customers across ASEAN, and reaffirmed low single-digit loan growth and high single-digit fee growth guidance for the full year.
The rally reflects a market rewarding banks that replaced shrinking net interest income with steadier fee-driven and insurance revenue.
Singapore’s three largest banks by market value have now outperformed the STI in each of the last three historic stress periods: 2008, 2020 and 2022.
Related: DBS Group, OCBC, UOB · Singapore
Malaysia Impact
The outperformance of the three banks is likely to have a positive impact on the Malaysian market, given the close economic ties between Singapore and Malaysia. UOB's enlarged franchise is also likely to benefit the Malaysian market.