“This is setting up the sector for a degree of profit booking and rotation. Net interest income guidance should move up for Singapore banks on the back of rates and loan growth, while net new money growth should be robust. Flows should help treasury and fees. These are known and likely discounted. Higher costs (delivery and guidance) as well as NPL (non-performing loan) formation and credit costs are possible drivers of weakness,” the JP Morgan report says.
In a report dated July 16, JP Morgan dampened animal spirits for the local banks. It is recommending that investors trim OCBC and UOB “into numbers”. It is particularly negative on UOB. Both banks announce 2Q2026 results on Aug 7. On the other had, the US bank expects “relative resilience” for SGX and Bursa.
In the report, JP Morgan says Asean banks, led by Singapore and Thailand, had re-rated on expectations of positive revisions and a lack of immediate negatives.
