Singapore’s triumvirate of local banks – DBS, OCBC and UOB – delivered firm 2025 first-quarter results, underscoring the sector’s resilience amid escalating global trade tensions and mounting geopolitical risks.

Despite threats of US tariffs and fresh volatility stemming from the recent India-Pakistan military clashes, the city-state’s lenders reported solid fundamentals, strong wealth management performances and diversified income streams – though these are paired with cautious provisioning.

DBS Group posted a record profit before tax of S$3.44 billion ( US$2.65 billion ) as total income rose 6% year-on-year to S$5.91 billion ( US$4.55 billion ). The performance was supported by balance sheet growth, strong wealth management fees and the bank’s best trading income in 12 quarters.

However, net profit dipped 2% to S$2.90 billion ( US$2.23 billion ), and DBS also set aside S$205 million ( US$158 million ) in general allowances as a precautionary measure. The bank, however, says its asset quality remained robust, with a non-performing loan ( NPL ) ratio of 1.1%, and a stable cost-to-income ratio of 37%.

“We had a strong start to the year with broad-based business growth led by wealth management and ROE [return on equity] above 17% despite the impact of the global minimum tax,” notes Tan Su Shan, DBS’ CEO. “Recent escalations in trade tensions have heightened macroeconomic risks and market volatility; as uncertainty persists, we will stay nimble to capture opportunities while prudently managing risks.”

OCBC, meanwhile, reported a net profit of S$1.88 billion ( US$1.45 billion ) for the first quarter, a 12% increase from the previous one, though 5% below the same period last year. Income growth came from fee income, trading gains and contributions from its insurance arm. Lower operating expenses also helped improve the cost-to-income ratio to 38.7%. As well, the bank set aside additional forward-looking credit allowances in light of ongoing economic uncertainty.

“Looking ahead, the heightened uncertainties brought about by the shifts in trade policies and geopolitical risks are expected to have a dampening effect on overall economic growth in the region,” notes Helen Wong, OCBC Group’s CEO, inn her briefing. “As the situation continues to unfold, we remain watchful and vigilant in managing risks.”

Wong, however, highlighting her bank’s momentum in wealth management, adds: “Both wealth management fees and assets under management ( AUM ) delivered double-digit growth year on year. Our AUM rose 12% to S$306 billion ( US$235 billion ), led by continued net new money flows."

UOB, the city state’s third-largest lender, posted a net profit of S$1.5 billion ( US$1.16 billion ), supported by its performance across retail and wholesale banking. Net fee income hit a record S$694 million ( US$534 million ), up 20% year on year, while net interest income rose 2% on the back of 6% loan growth.

Though other non-interest income declined 5% from a year ago, it jumped 25% quarter-on-quarter, reflecting strong customer treasury flows and improved trading activity. UOB, it says, has raised credit provisions to 35 basis points, while maintaining a healthy NPL ratio of 1.6%, and its cost-to-income ratio improved from 44.6% to 42.6%, which is credited to stricter cost control.

Wee Ee Cheong, UOB’s CEO, struck a more cautionary tone in his briefing, warning: “Macroeconomic uncertainties from the US tariffs have triggered significant market volatility and disruptions in global trade.”

Nonetheless, he reaffirmed confidence in the region’s prospects adding: “We believe in Asean ( the Association of Southeast Asean Nations )’s resilience and long-term potential. The region’s competitive edge in manufacturing and commodities will ensure its relevance as global supply chains reconfigure. We expect flows within Asean, and between Asean and the rest of the world, to continue growing as countries seek new ways to prosper.”

As well, UOB, Wee emphasizes, remains well-positioned to weather challenges and capture growth.  “With our robust balance sheet, healthy capital and strong liquidity positions, we are well-equipped to address risks and seize the right opportunities for growth.”

As global supply chains transform, Southeast Asia’s increasing self-reliance and expanding connectivity with the wider Asian region may yet serve as a stabilizing counterbalance to any further global uncertainty.

Despite the external pressures, from protectionist US policies to rising South Asian geopolitical tensions, Singapore’s banks have signalled cautious confidence. Their conviction is anchored in their robust capital buffers and the growing momentum of intra-Asean trade.

Also, as DBS’s Tan points out in her bank’s results briefing, the burgeoning mass affluent segment remains a reliable source of sticky revenue and new asset inflows for Singapore’s banking triumvirate.

With Asia’s middle class continuing to grow, this segment represents a fertile hinterland, largely out of reach for international private banks, which are constrained by high entry thresholds and the absence of retail or small and medium-sized enterprise offerings.

For the Singaporean banks, these entry-level gateways often serve as natural on-ramps into broader wealth management relationships and are expected to provide a stable foundation for their core revenue growth.