DBS Q1 Beats & Raises Dividend 8%! Will UOB and OCBC Follow?
$DBS(D05.SI)$ reported Q1 2026 results with net profit of S$2.93B (+1% YoY), beating the Bloomberg consensus of S$2.88B.
Shares closed +3.4% at S$58.50. Non-interest income and wealth management fees both hit all-time highs. Dividend raised to S$0.81/share from S$0.75 a year earlier. In a lower-rate world, DBS proved the model works — just not the way the market expected.
Up next: $UOB(U11.SI)$ (May 7) and $OCBC Bank(O39.SI)$ (May 8).
Highlights for DBS earnings
1. Deposit growth blew past expectations.
Customer deposits rose 9% YoY to S$629.9B, with more than two-thirds in CASA. CEO Tan Su Shan upgraded full-year deposit growth guidance to "high to higher single-digit." Low-cost CASA inflows are sticky — this is a structural, not cyclical, tailwind.
2. Wealth management fees hit a record S$907M!
With S$10B in net new money and AUM climbing to S$492B. Middle East conflict is accelerating Singapore's safe-haven positioning, and it showed up directly in bancassurance and investment product sales. This benefits all three Singapore banks — watch OCBC's Bank of Singapore and UOB's private banking closely next week.
3. Rates logic is inverted — and that matters.
DBS disclosed that each +1bp rise in USD rates reduces NII by ~US$4M, due to hedging positioning. Rising rates are a headwind, not a tailwind. SORA guidance was also cut from 1.25% to 1.00%, and the bank now expects zero Fed rate cuts in 2026 (down from two). NIM pressure is structural — non-interest income is what gets you through it.
What to Watch for UOB and OCBC
DBS's results give clear read-throughs for the final two banks:
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NIM pressure is baked in. Q1 avg SORA was 1.07% vs 2.54% a year ago. Expect NII to decline for UOB and OCBC similarly — the question is whether wealth and fee income offsets it
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Wealth fees are the swing factor. Can OCBC's Bank of Singapore and UOB's private banking match the record levels DBS put up? If yes, both could also beat on non-interest income
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Guidance tone matters most. DBS upgraded its FY2026 profit outlook from "below 2025" to "good shot at 2025 levels." If UOB and OCBC echo this, the sector re-rating has further room to run
Prediction: Where Do UOB and OCBC Close After Earnings?
Correctly predict OCBC or UOB's post-earnings Friday closing price to share 1,000 Tiger Coins. Every participant gets 5 Tiger Coins just for joining. If no one guesses correctly, coins are split equally.
💬 Comment below:
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I think OCBC will close at SGD ___ on May 9 (Friday after earnings)
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I think UOB will close at SGD ___ on May 8 (earnings day)
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Will OCBC or UOB match DBS's wealth management fee surprise? Yes / No
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The focus now shifts to whether UOB & OCBC can replicate this momentum. With NIM pressure largely priced in, wealth & fee income will be the key differentiator. If both banks show solid private banking and investment product growth, the sector still has upside.
My base case is a partial match on wealth strength, supported by continued safe-haven inflows into Singapore. I expect $ocbc bank(O39.SI)$ at SGD 22.50 & $UOB(U11.SI)$ at SGD 37. If this holds, the narrative continues shifting from rate sensitivity to fee-driven compounders.
@Tiger_SG @TigerClub @Tiger_comments @TigerStars
DBS has set a high bar and while OCBC and UOB are trying their best, they have some catch up to do to beat DBS's SGD907 million in wealth management fees.
OCBC has a secret weapon in $Great Eastern(G07.SI)$. Analysts expect OCBC to show strong wealth fee momentum because of this insurance powerhouse.
UOB is the most undervalued among the 3 banks. While it may not hit DBS's record, UOB is expected to see normalised provisions and stable fee growth from their regional expansion. UOB's forte is their retail banking exposure in South East Asia especially after they have taken over Citi's retail banking business in Indonesia, Thailand, Malaysia and Vietnam.
If OCBC and UOB can even whisper the words "record fee growth" I believe their share prices will rocket to the moon. If not their dividends will still be a great comfort.
@Tiger_SG @Tiger_comments @TigerStars
1. I think OCBC will close at S$22.50 on 9 May.
2. I think UOB will close at S$37.70 on 8 May.
3. Both UOB and OCBC will match DBS DBS’s wealth management fee surprise.
1. I think OCBC will close at S$22.50 on 9 May.
2. I think UOB will close at S$37.70 on 8 May.
3. Both UOB and OCBC will match DBS DBS’s wealth management fee surprise.
2. UOB will close at S$37 on 8 May (earnings day).
3. Yes both will match the DBS record level. OCBC will have surprise on the upside than UOB.
1. I think OCBC OCBC will close at S$22.35 on 9 May (Fri).
2. I think UOB UOB will close at S$36.90 on 8 May (earnings day).
3. Will OCBC or UOB match DBS DBS’s wealth management fee surprise?
My vote: Yes, but OCBC is more likely to surprise on the upside than UOB.
Reason: DBS just posted record wealth fees, showing client activity remains strong despite rate headwinds. OCBC has already been delivering standout wealth growth momentum, while UOB’s upside may be steadier rather than explosive.
If I had to pick one dark horse for a “DBS-like” fee surprise: OCBC.
It’s not just “can they beat earnings?” anymore, it’s whether fee income and wealth management can offset NIM pressure the same way DBS did.
My guess:
1. OCBC close: SGD 16.20
2. UOB close: SGD 36.80
3. Yes — I think they can partly match DBS’s mealth management surprise, but guidance tone will matter more than the headline profit beat.
If both banks show strong fee income and confident guidance, Singapore banks may still have room to re-rate.
2. I think UOB will close at SGD35.8 on May 8 (earnings day)
3. Will OCBC or UOB match DBS's wealth management fee surprise? Yes
我认为大华银行将于5月8日收盘价为 35.5 新加坡元