Singapore's largest banks have reported robust profit growth for the April-June 2026 quarter, even as ongoing geopolitical tensions between the U.S. and Iran create uncertainty around inflation, interest rates, and economic activity.

United Overseas Bank (UOB) saw its second-quarter profits rise by 10%, while Oversea-Chinese Banking Corporation (OCBC) reported a 22% increase. The CEO of UOB highlighted positive factors contributing to this growth, stating, "We see healthy trade and investment flow, stronger connectivity with greater China and ongoing supply chain shift into the region as businesses look to ASEAN for growth," during an earnings briefing.

Despite external challenges, Singapore's banking sector benefits from increased regional trade and investment, particularly with China, and the shifting supply chains favoring ASEAN countries.

Sources