Singapore, Feb 6, 2026, 15:03 SGT — Regular session
DBS Group Holdings slipped on Friday, closing near S$59.37, a 0.5% drop from the day before. The stock fluctuated between S$59.04 and S$59.42 during trading. (Investing)
The move carries more significance than it seems. DBS will be the first major Singapore bank to report fourth-quarter results next week, with traders keen to see if the hit to earnings from tighter funding is easing.
Simultaneously, the bank is pushing growth in payments and cross-border flows—areas investors quickly measure against concrete data like fee income and deposit trends when the results drop.
Singapore stocks dipped in early trading, with the Straits Times Index off 0.7% by midday. DBS shares fell roughly 0.7%, and OCBC slipped 0.9%. (The Business Times)
The broader market turned jittery as investors retreated from riskier assets following a tech-driven selloff across Asia this week. “With U.S. tech wobbling, sentiment tends to trickle over to Asian tech as well,” said Zavier Wong, a market analyst at eToro. (Reuters)
DBS plans to hit S$100 billion in consumer cross-border flows across its key markets by 2030 and aims to double its market share to 20%. “We want to be a dominant player,” Sanjoy Sen, group head of consumer banking, told The Business Times. (The Business Times)
The strategic move comes amid investor debate over bank margins. Analysts suggest the three local lenders could be close to the end of margin compression as interest rates level off and funding costs ease. Still, they caution that finding clear growth catalysts for the next phase remains challenging. (The Business Times)
Bank stocks hinge largely on net interest margin — the gap between loan earnings and deposit costs. Investors will watch closely for shifts in fee momentum and early signs of rising credit costs, which tend to spike as growth falters.
The downside risk hasn’t disappeared. Should rates drop quicker than anticipated or deposit competition ramp up again, margins could tighten once more. That would likely trigger a sharper risk-off shift, hitting both wealth and market income simultaneously.
Looking past earnings, Singapore’s Budget 2026, set for Feb. 12, stands out as a key near-term trigger for local risk assets. Economists are bracing for a more restrained fiscal plan compared to last year. DBS economist Chua Han Teng points to likely government investments in technology and innovation, as the economy grapples with “increasingly binding land and labour constraints.” (Reuters)
DBS kicks off earnings season for the major local banks on Feb. 9. Market watchers will zero in on its margin and fee growth guidance to gauge how OCBC and UOB might be valued when they report later this month. Then, all eyes turn to budget announcements on Feb. 12.
