DBS, OCBC, UOB face rate hike reality check
The recent sell-off may not have been about the micro fundamentals of the 3 banks but a broader repricing of risk Read more at The Business Times.
The recent sell-off may not have been about the micro fundamentals of the 3 banks but a broader repricing of risk
Ben Paul
Published Sun, Oct 11, 2026 · 10:00 PM
[SINGAPORE] When the US Federal Reserve hiked rates in September, some analysts said the move might help support net interest margins (NIMs) at DBS, OCBC and UOB.
Less than a month on, the most influential voices in the market are now predicting that tighter monetary conditions may actually weigh on the profitability of the three banks – and drive their share prices lower.
Notably, Citi warned last week of “misplaced optimism” surrounding higher interest rates as it lowered its earnings forecasts for OCBC, and downgraded its rating on the stock from “neutral” to “sell” – with a price target of S$27.50.
Originally published by businesstimes.com.sg. Syndicated material does not necessarily reflect the views of Glamour Canada.
