Singapore banks – US banks' 2Q26 reporting season strong

✨The Singapore banks have rallied to fresh record highs three weeks prior to their respective announcement of their second quarter earnings (DBS on 6 August, pre market, OCBC and UOB on 7 August, pre market)

‼Will the results announcement propel them to new highs or will it set the stage for a drastic pullback from current levels?

Can the Singapore banks take their cue from the US banks which recently concluded their earnings season?

✍Macquarie Research (MQ) published their latest research report on the Singapore banks on 16 July 2026 upon the wrap-up of earnings from US major banks

Read more for the full article containing excerpts of MQ’s report, as well as important disclaimers:

Key points

• The US major banks wrapped up 2Q26 reporting season last night. Across the 6 majors, lending, wealth and trading income were all strong

• For the Singapore banks, there is typically a clear read-through, especially for wealth assets and trading income (particularly DBS)

• MQ recently upgraded Singapore banks, and see 2Q26 results as supportive. Their pecking order is UOB > OCBC > DBS, all rated Outperform

Trading income for the US major banks remained elevated, up 8% quarter-on-quarter (QoQ) and 33% year-on-year (YoY). MQ tallies aggregates of Bank of America, Citi, JP Morgan, Morgan Stanley, Goldman Sachs, Wells Fargo, all not rated. The US ba

nks benefited from equities volatility, though the Singapore banks rely more on fixed income trading. DBS has historically had the closest relationship with reported US bank trading income figures.

Lending trends - supportive. The 6 major US banks' combined loan growth was 11% YoY, with loan balances rising 2% QoQ. Commentary from the banks indicated it was skewed towards corporate and wealth-based lending, with capex for data centre/AI and securities financing a highlight. Consumer lending trends were soft (mortgages, auto). Credit costs were 59bps (annualised, aggregate) down 14bps on the year prior, suggesting the risk environment was positive. Recent loan balance growth in Singapore has been similarly strong, though this data point suggests credit risk was also benign

Wealth assets rose 8% QoQ suggesting strong markets have been a positive tailwind for performance and also inflows. Singapore banks' wealth asset trends have mirrored those of major US peers, with more stability in risk-off environments (for example in 1H22).

Overall profits for US banks rose 15% QoQ / 41% YoY, however this was supported by an 11% YoY increase in Net Interest Income which is unlikely for the Singapore banks given SGD rates pressure during the quarter. MQ is expecting flat QoQ / +4% YoY profits led by fees (wealth), however there is potential further upside on trading income and better loan loss provisions.

MQ is positive on Singapore banks, but positioned for relative value. MQ’s preference is UOB as there is more room to surprise against subdued expectations. MQ expects OCBC continues to have strong wealth trends. The trading performance of US peers bodes well for DBS. MQ’s pecking order is UOB > OCBC > DBS. Singapore banks' earnings season is on Aug-6 to Aug-7

DBS: Outperform, 12-month target price of $70.86 based on a Price to Book stock methodology

OCBC: Outperform, 12-month target price of $27.76 based on a Gordon Growth Model stock methodology

UOB: Outperform, 12-month target price of $45.16 based on a Gordon Growth Model stock methodology

​​​​​​​Note:

Macquarie Research is independent from the Warrants business, what the Macquarie Warrants desks quote from Macquarie Research may not reflect the complete analysis of Macquarie Research on the relevant company over time.

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Call warrants tracking the Singapore banks have dominated the top warrant gainers table over the past 12 weeks from 24 April to 17 July, following share price rallies of between 18% to 32%:

Put warrants over the same period would have dropped as much as 94%, although only UOB put warrant has featured in the top losers table over the same period.

Given the higher stock prices, Macquarie Warrants have listed new call and put warrants recently, the latest being this morning’s new DBS call warrant IJMW (https://warrants.com.sg/tools/livematrix/IJMW).

Interested investors can use the Exposure Simulator to estimate the warrant price performance of any of the warrants based on your target exit levels in the Singapore banks.

Here’s a short video explanation of how to use the Exposure Simulator tool: https://www.youtube.com/watch?v=uT6oleWgr00

Trending warrants over the three banks:

$DBS MB eCW270226(IJMW.SI)$

$DBS MB ePW270226(V1RW.SI)$

$OCBC Bk MB eCW261230(99HW.SI)$

$OCBC Bk MB ePW270226(92WW.SI)$

$UOB MB eCW261230(9R4W.SI)$

UOB MB ePW270226 (YV0W)