Singapore banks’ loan growth, fee income steady in Q2

But treasury customer income is lower after their record highs in Q1.

Singapore’s banks delivered strong earnings in Q2 2024 on the back of net interest income (NII) growth, continued recovery in fees, and benign provisions, reports UOB Kay Hian (UOBKH).

Loan growth across the country’s big three banks– DBS, OCBC, and UOB– was about 2% year-on-year (YoY) across the board during the quarter, reports UOB Kay Hian. 

Of the big three, DBS recorded the strongest NII growth, at 4.7% YoY, noted UOBKH analyst Jonathan Koh.

DBS also reported the highest fee income increase, with a 27% YoY growth versus UOB’s fee income growing 18% YoY and OCBC’s 8% YoY increase for the quarter.

OCBC and UOB, meanwhile, raised their interim dividends: OCBC to SGD 44 cents, and UOB to SGD 88 cents. DBS maintained its quarterly dividend at SGD 54 cents per share.

However, all three banks saw lower treasury customer income after a record high Q1. DBS’ treasury customer income is 8% quarter-on-quarter (QoQ) lower than in Q1; OCBC’s is 5% QoQ lower; and UOB’s is 1% QoQ lower over the same period of comparison.

Other notable changes in Q2 include DBS' announcement of a new CEO come 2025. Tan Su Shan is the first homegrown CEO for the bank, according to UOBKH.