Singapore banks fall ahead of earnings release; OCBC leads losses

All three local banks in Singapore experienced declines on Monday morning ahead of their earnings releases, with OCBC leading the losses. As of 11:43 am, OCBC shares dropped by S$1.07 or 3.7% to S$28.22, while DBS fell by S$1.82 or 2.5% to S$71.31, and UOB declined by S$0.89 or 2.2% to S$40.48. The drop in bank shares comes as analysts predict wealth management fees may ease in the third quarter, despite ongoing pressure on net interest margins.

Investors will closely monitor the banks' exposure to AI-related financing and the impact of rising bond yields on their investment portfolios and capital positions. However, analysts believe the banks' underlying asset quality and capital positions are likely to remain robust.