From AI financing to Indonesia outlook: 4 takeaways from Singapore banks’ Q3 results
The local lenders are staying focused on wealth growth and selective lending despite margin pressures, market uncertainty
Singapore's local banks reported mixed Q3 results this week, with DBS' profit down 5% year-on-year, OCBC's earnings up 3%, and UOB's profit jumping 182.2%. Despite margin pressures and rising funding costs, all three lenders remained optimistic about long-term growth opportunities and focused on disciplined financing of AI infrastructure, a commitment to Indonesia, and continued investment in wealth management.
Energy prices, tighter financial conditions, and geopolitical risks impacted the banks' outlook, but loan growth was expected to remain resilient. All three banks expected non-interest income growth in the high-single or double-digits by 2027. OCBC and UOB cautioned about higher operating costs due to increased investments in wealth management and technology.
Despite currency weakness and uncertainty, the banks maintained their long-term commitment to Indonesia, with UOB and OCBC seeing modest growth in loan and fee income from the Southeast Asian country.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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