Singapore’s The largest bank Preparing for macroeconomic uncertainty is being done after quarterly results mix.
DBSSoutheast Asia’s largest bank provides a decent quarter. The bank reported on Thursday that its profit for the quarter ended June 2025 was 2.82 billion Singapore dollars ($2.2 billion), up 1% year-on-year. Strong loans and wealth management fees have led DBS’ total revenue to 5% year-on-year to $5.8 billion in Singapore dollars ($4.47 billion).
However, Singapore Bank uobThe company released quarterly results on the same day, with quarterly profits down 6% to Singapore dollars ($1.34 billion) as net interest income weakened.
OCBCIts quarterly profit also fell 6% to $2.34 billion ($1.82 billion), reported last week. Like UOB, the decline in net interest income also puts pressure on OCBC’s performance.
These three banks, maximum Through Southeast Asia’s revenues, not only are struggling to deal with the decline in interest rates, but also warns of uncertain economic prospects.
exist statementDespite global polarization, UOB CEO Wee Ee Cheong expressed confidence in the long-term prospects of Southeast Asia. Among the three major banks in Singapore, UOB has the greatest risk to Southeast Asia.
“ASEAN continues to demonstrate resilient growth as the global landscape transitions to a multipolar world order. With regional integration, trade diversification and foreign direct investment, ASEAN thrives in a growing global economy,” Wei said in a statement.
However, UOB’s CEO also warned that new U.S. tariffs could undercut consumer sentiment and investment activity.
OCBC CEO Helen Wong is also Highlight Her macroeconomic outlook was challenging in her earnings statement last week. “Evolving trade and monetary policy, along with ongoing geopolitical tensions, is expected to weigh the growth outlook,” she said.
DBS CEO Tan Su Shan, after her first full quarter as the bank’s new CEO, admit “External uncertainty,” although added that “active management” of the balance sheet will help DBS browse interest rate cycles.
Tariffs and interest rates
Rates that began in 2021 are now easing. In the second half of 2024, the U.S. Federal Reserve lowered a percentage point and could further reduce fees Weak U.S. job growth
Last year, the EU and China also began to ease their monetary policies. Singapore’s Monetary Authority, the de facto central bank of city-states, is also Loose Its monetary policy earlier this year.
Banks make profits from higher interest rates by earning more income on loans and attracting additional deposits.
In addition to falling interest rates, Singapore’s three banks must drive higher U.S. tariffs. Trump’s new tariffs on U.S. trading partners take effect today. Singapore escapes the flood of new taxes, and its exports are only get Baseline 10% tariff on all U.S. limited exports.
However, Singapore’s neighbors’ economy has become worse. Southeast Asian economies like Thailand, Indonesia and Vietnam have received tariffs of about 19% to 20%.
Other Asian economies have gotten worse. China, a major market for DBS and OCBC, now faces 55% U.S. tariffs, although some of these taxes are suspended to allow trade negotiations. India, another target market for DB is also face The steep tariff is 50%.
While tariffs will not directly affect DB, UOB or OCBC, a broader tariff-driven economic slowdown will weaken consumer sentiment and curb investment activity, reducing business opportunities in Singapore’s globally connected banking sector.
