Singapore Banks' Asset Quality Likely Intact in 3Q

Dow Jones10-17

0724 GMT - Singapore banks' 3Q asset quality likely remains intact thanks to stabilizing macroeconomic conditions, say CGS International analysts in a note. They expect DBS and OCBC's credit costs in 3Q to hold steady from 2Q, despite the banks projecting higher credit costs in 2H. UOB's credit costs may still remain elevated as it aims to build up its general provisions buffers, they note. The analysts expect the banks' net profit to decline in line with lower interest rates, and believe the lenders' 2026 outlook guidance will be investors' main focus. CGS maintains its neutral rating on Singapore banks, preferring DBS for its attractive dividend yield. OCBC could also surprise with mark-to-market gains on investments held through its insurance unit Great Eastern, they say. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

October 17, 2025 03:24 ET (07:24 GMT)

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