Singapore Banks Post Record Non-Interest Income in Q2 2026

SINGAPORE, Aug 11, 2026 — Singapore’s three major banks reported record combined non-interest income (NOII) of $5.72 billion in Q2 2026, accounting for 41% of total earnings, according to a market update by SGX. This marks a sharp rise from 31% in Q2 2023, reflecting the growing importance of fee-based and customer-driven income streams.

Combined total income reached $13.86 billion, comprising $8.14 billion in net interest income (NII) and the record NOII. Wealth management fees, transaction services, and treasury sales drove growth, with broad-based contributions across all three banks. One bank reported a 51% year-on-year surge in NOII, while another saw wealth management income rise 16% alongside a 7% increase in high-net-worth assets under management.

Banks record

NII remained resilient at $8.14 billion, extending a 15-quarter streak above $8 billion. Despite softer loan yields from easing regional benchmark rates, banks cushioned margin pressures through balance sheet growth, hedging, and funding cost management. Customer loans expanded across the trio, with year-to-date growth led by corporate lending.

Asset quality stayed stable, with non-performing loan (NPL) ratios ranging between 0.9% and 1.6%, supported by robust coverage levels. Analysts noted that while headline valuations are stretched, rotation into alternative themes may emerge in H2 2026.

Looking ahead, NOII is expected to remain a key earnings driver, while NII growth could strengthen in FY2027 if US interest rates rise further.

#latestmalaysia