Shares of Singapore’s three major banks dropped on Monday afternoon, with OCBC leading the declines as investors positioned themselves ahead of the lenders’ third-quarter earnings announcements this week.
OCBC fell 3.5%, DBS fell 2.5%, UOB fell 1.9%.
UOB is scheduled to release its results on Wednesday, followed by DBS on Thursday and OCBC on Friday.
Market analysts have cautioned that wealth management fee income could moderate in the third quarter after strong growth in the previous quarter. Meanwhile, net interest margin compression is expected to remain a headwind for the banking sector.
Investors will also be watching the banks’ exposure to AI-related financing and assessing how higher bond yields could affect their investment portfolios and capital ratios.
Despite these concerns, analysts generally expect the three lenders to maintain sound asset quality and resilient capital positions.
