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Singapore banks eye wealth segment after strong Q2 results


Singapore’s local banks showcased strong Q2 2023 results, with a surge in net interest income driven by high-interest rates. Despite initial market expectations of diminishing net interest margins (NIMs), the U.S. Federal Reserve’s rate hikes rejuvenated optimism for banks’ NIMs throughout 2023. UOB, DBS, and OCBC all reported considerable profit increases of 27%, 45%, and 34% respectively, attributing their successes to higher interest rates and diverse income avenues. Wealth management emerged as a promising growth driver for all banks. Market analysts remain mixed on the banks’ future prospects, emphasising potential challenges like declining loan growth and a volatile macroeconomic landscape. However, DBS notably attracted attention with its SGD12bn in new wealth segment money and anticipated dividend increase, leading to heightened investor interest.

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