Singapore’s three lenders – DBS, OCBC and UOB – closed 2025 in solid shape, even as falling interest rates, higher global taxes and rising geopolitical tensions influenced the banking landscape, their profits were broadly stable, capital levels remained strong and asset quality held firm.

Yet, as 2026 unfolds, the mood is shifting. Trade tensions, a more fragmented global economy and the ongoing turmoil around US tariffs are injecting fresh uncertainty into an already delicate environment. While the year just passed was one of resilience for the banks, the year ahead may test that resistance.

DBS: Strength in wealth, deposits

The city state’s biggest bank, DBS, posted a record pre-tax profit of S$13.1 billion ( US$10.3 billion ) in 2025, with total income rising 3% to S$22.9 billion, despite lower interest rates through the year.

Falling benchmark rates squeezed lending margins, but DBS cushioned the impact by attracting a surge in deposits, the largest annual increase in its history. Customer deposits jumped 12% to S$610 billion, giving the bank a strong and stable funding base. Loans also grew steadily, rising 6% to S$445 billion.

A key driver of performance was fee income, which climbed 18% to a record S$4.9 billion. Wealth management was particularly strong, with fees from investment products and bancassurance rising 29%. Assets under management also increased 19% to S$488 billion, reflecting healthy client inflows and firmer markets. Trading income also rebounded sharply, climbing 49% to its highest level in four years.

Net profit came in slightly lower at S$11 billion, largely due to higher tax expenses, following the introduction of the global minimum tax. Even so, profitability remained strong, with returns to shareholders holding at healthy levels.

The results, notes Tan Su Shan, DBS’ CEO, are proof of the bank’s resilience amid a shifting global backdrop. “Record profit before tax and return on equity of 16% were a testament to the resilience and adaptability of our franchise,” she points out, adding that while the bank is well positioned, global rate pressures and geopolitical tensions are likely to persist.

However, she also offered a more direct warning to investors to “buckle up”. As, in her view, 2026 is shaping up to be a volatile year.

OCBC: Diversification proves its worth

For the full year 2025, OCBC reported net profit of S$7.42 billion, slightly below the previous year. Beneath that headline figure, the bank delivered record total income of S$14.6 billion and its highest-ever profit before tax at S$9.12 billion. The difference, the bank notes, comes largely from higher tax expenses, not weaker business activity.

A major strength was wealth management. Income from the bank’s wealth businesses, which includes the Bank of Singapore, rose 14% to S$5.6 billion, accounting for 38% of total income. Assets under management increased 15% to S$343 billion, supported by fresh inflows and stronger markets.

Non-interest income overall climbed 16% to S$5.46 billion, helped by gains in trading and insurance. Great Eastern, the bank’s insurance arm, saw income rise 17% to S$1.07 billion, reinforcing the value of OCBC’s broader financial services model.

Loan growth continued at a steady pace, and bad loans remained low at 0.9% of total lending. The bank’s capital position also stayed strong, with its core capital ratio at 16.9%, comfortably above regulatory requirements.

“The results reflected the strength of our fundamentals and our disciplined execution amid a challenging operating environment,” shares Tan Teck Long, OCBC’s new group CEO, adding that while the bank remains “cautious yet positive”, global conditions are likely to remain uncertain.

OCBC’s diversified model, spanning retail banking, wealth management, insurance and trading, once again helped smooth the impact of lower interest rates, and that balance may prove increasingly valuable if markets turn more volatile in 2026.

UOB: Backed by regional connectivity

In 2025, UOB earned S$7.7 billion ( US$6.08 billion ) in operating profit. Net profit came in at S$4.7 billion, lower than the year before, after the bank chose to put aside extra reserves earlier in the year as a safeguard against a more uncertain global outlook.

Interest income at the lender softened as rates fell, even though lending grew 4% over the year. But UOB found support elsewhere. Fees, from wealth management, corporate advisory work and everyday banking services, rose 7% to a record S$2.6 billion. Demand from clients for treasury and hedging services also reached new highs.

Loan quality held steady, with bad loans at 1.5% of the book, little changed from a year earlier. The earlier build-up in reserves has left the bank in a prudent position heading into 2026.

“The group delivered a resilient full-year performance, fuelled by strong fee momentum across our diversified business franchise,” states Wee Ee Cheong, UOB’s CEO. “With a robust balance sheet and an expanded regional franchise, we are well placed to support customers through cycles and seize new opportunities.”

That regional network remains central to UOB’s story. More than a quarter of its wholesale banking income now comes from cross-border business, and trade loans jumped 26% last year, a sign of how deeply embedded the bank is in Southeast Asian supply chains. If global trade patterns shift under fresh tariff pressures, that footprint could become even more important.

Unsettled year ahead

Across all three banks, several themes stand out. Their capital strength is not in question. Each lender remains comfortably above regulatory requirements, providing a meaningful buffer should conditions worsen.

Wealth management and fee-based businesses are increasingly central to earnings stability; and, in a lower-rate environment, advisory services, transaction banking and trading income are helping offset the pressure on margins, while their asset quality remains steady, though provisioning decisions suggest management teams are preparing for a less predictable cycle.

The challenge in 2026 will come less from domestic fundamentals and more from the external environment. The possibility of renewed US tariff measures, shifting trade alliances and uneven global growth could disrupt regional supply chains and corporate confidence, and geopolitical tensions show little sign of easing.

Singapore’s banks are entering the year well capitalized, liquid and diversified. However, as DBS’ Tan has warned investors to “buckle up”, the message across the sector may be that, while the foundations are solid, the ride ahead may be less smooth.