OCBC's YoY loan growth falls behind DBS, UOB by 2.8% in Q3

However, on a q-o-q comparison, OCBC had the biggest loan growth of 3.8%.

OCBC recorded the lowest year-on-year (YoY) loan growth for the third quarter, falling behind competitors DBS and UOB.

UOBKayHian said UOB and DBS saw stronger loan growth of 9% YoY, whilst OCBC only recorded 6.2%.

On a quarter-on-quarter comparison, however, OCBC had the biggest loan growth of 3.8%, whilst DBS and UOB only achieved expansion of 2% and 2.5%, respectively.

With the banks’ third-quarter loan growths all surpassing market expectations, analysts said they are expecting further cyclical recovery for Singapore.

Meanwhile, all banks were also able to maintain double-digit growth in their fee incomes, with DBS jumping by 11.3% YoY, OCBC by 13.6% YoY, and UOB by 14.6% YoY.

Analysts attributed the double-digit growth to the higher volume of customer activities during the quarter.  

In DBS, fee income was driven by transaction services which grew by 18% YoY due to cash management and trade finance. 

DBS and UOB’s cards contributed to their respective fee growths, both rising by 13% YoY due to recovery in consumer spending. 

The three banks also reported increases in their assets under management by 13%, 6%, and 6% YoY, respectively. 

Meanwhile, analysts said Singapore banks, OCBC and UOB in particular, will also see further growth as more ASEAN countries like Malaya, Thailand, and Indonesia, are starting to reopen their economies. 

“Cyclical recovery remains intact. Economic growth is expected to accelerate as economies re-open with vaccination rates on the rise around the region in 2022,” UOBKayHian said.