Singapore banks face tougher 2027 as margins narrow and costs rise
Why it matters: DBS and UOB both missed expectations, while analysts cut target prices as deposit competition squeezes profit growth.
Singapore’s biggest banks are heading into a more difficult 2027 after mixed third-quarter results pointed to tighter lending margins, higher funding costs and slower earnings growth. DBS and UOB both fell short of analysts’ expectations, while OCBC beat forecasts. DBS posted a 5% drop in quarterly net profit to S$2.81 billion, hurt by weaker trading income, and UOB reported net profit of S$1.25 billion, up sharply from a low year-earlier base but below consensus. Analysts at several firms lowered their target prices for DBS and UOB, citing caution over margin pressure, rising operating costs and tougher competition for deposits, even as loan growth and wealth management stayed relatively resilient.