SG banks at fresh highs: The wealth hub thesis has further to run

Key Points

• Escalating conflict in the Middle East has accelerated capital flows toward Singapore, with evidence seen in rising net wealth inflows from Dubai, a fourfold increase in Singapore’s gold imports from the UAE, and higher client enquiries at a Singapore private wealth law firm.

• MAS is targeting private banking account opening times of within one month by end-2026, reducing onboarding friction while maintaining the AML standards that underpin Singapore’s credibility as a trusted wealth jurisdiction.

• DBS will open 18 new and upgrade 36 existing wealth centres across APAC by end-2027, while OCBC’s Bank of Singapore targets a 30% increase in UHNW AUM contribution by 2028 under its integrated “Next Frontier” wealth strategy.

• We maintain our positive stance on the Singapore banking sector, with non-interest income increasingly supporting earnings growth in 2026. DBS remains our top pick, supported by its strong private banking franchise, regional wealth platform, and the highest dividend yield among peers.

Singapore's safe-haven status is strengthening — and MAS is lowering the barriers to capture it

Singapore’s position as a global wealth hub has strengthened at an accelerating pace so far in 2026.

The escalation of conflict in the Middle East has disrupted the calculus for Dubai’s large expatriate wealth community, prompting a reassessment of capital and residency allocation. With its strong safe-haven reputation, Singapore is the direct beneficiary: OCBC has reported rising net wealth inflows from Dubai, gold imports from the UAE have quadrupled since January. Separately, a Singapore-based private wealth advisory law firm reported a one-third increase in new client enquiries across March and April, pointing to rising interest in wealth relocation and structuring activity.

MAS is now reinforcing that momentum with policy support. On 25 May, MAS announced that it is working with the Private Banking Industry Group to reduce private banking account opening times to within one month by end-2026, versus six weeks or longer currently for more complex cases. The mechanism is targeted rather than accommodative. A new MAS circular guides financial institutions to assess source of wealth in a more risk-proportionate manner, removing unnecessary procedural delays while maintaining existing Anti-Money Laundering (AML) safeguards. MAS Managing Director framed the initiative explicitly as a competitiveness measure to strengthen Singapore’s position as a “safe and trusted financial hub” amid rising global uncertainty.

The implication for Singapore’s banks is tangible. Faster onboarding shortens the gap between client acquisition and fee-generating asset deployment, supporting continued growth in non-interest income. With wealth inflows accelerating and operational bottlenecks being reduced, DBS, OCBC, and UOB are well positioned to capture a larger share of regional wealth migration flows.

Banks are building capacity to meet demand that is already arriving

The industry’s response to the structural wealth opportunity is already visible in operating strategy and capital allocation. On 1 June, DBS announced plans to open 18 new and upgrade 36 existing wealth centres across Singapore, Hong Kong, China, India, Indonesia and Taiwan by end-2027. This marks the bank’s largest physical wealth expansion to date. The first Singapore centre will open in Q3 2026, increasing the bank’s DBS Treasures wealth centre footprint in the city-state by 50%.

The expansion reflects how affluent clients continue to engage with banks despite the rise of digital wealth platforms. More than 40% of high-net-worth clients in Singapore and Hong Kong still prefer face-to-face meetings with relationship managers. At the upper end of the wealth segment, physical proximity remains a competitive advantage, particularly for complex advisory and cross-border wealth planning needs.

OCBC’s Bank of Singapore is pursuing the same opportunity through sharper client segmentation, concentrating on ultra-high-net-worth (UHNW) clients with at least USD100 million in assets and targeting a 30% increase in UHNW AUM contribution by 2028. At the same time, the group’s “Next Frontier” strategy integrates Bank of Singapore, consumer banking and insurer Great Eastern under a unified wealth framework. The approach is already strengthening cross-franchise monetisation across the group.

The earnings contribution is becoming increasingly visible at the sector level. Combined non-interest income for DBS, OCBC and UOB reached a record SGD 5.16 billion in Q1 2026, up from SGD 4.78 billion a year earlier and SGD 4 billion in the previous quarter. Fee income is no longer simply offsetting softer net interest margins as rates normalise. It is becoming the sector’s primary earnings growth driver as NIMs stabilise closer to a floor.

Positive sector stance maintained; DBS remains our top pick

The convergence of accelerating safe-haven inflows, deliberate franchise expansion, and regulatory measures that reduce onboarding friction reinforces our constructive view on Singapore banks’ non-interest income outlook. The structural case for Singapore as a global wealth hub strengthened further in the opening months of 2026, and banks with established private banking platforms are best positioned to convert those inflows into sustained fee income growth.

We maintain our positive stance on the Singapore banking sector, with DBS remaining our top pick. The bank delivered record wealth management fees of SGD907 million in Q1 2026, while its large-scale APAC wealth centre expansion strengthens its ability to capture rising regional wealth flows.

The key near-term risk remains market volatility, as part of private banking fee income is transaction-driven and sensitive to investor sentiment. However, this affects the timing of monetisation rather than the structural direction of flows. Capital allocation into Singapore is increasingly being driven by geopolitical positioning, regulatory credibility, and wealth preservation priorities that extend beyond market cycles.

Against this backdrop, Singapore banks continue to offer an attractive combination of earnings visibility and structural fee income growth as the wealth hub thesis continues to strengthen.

Related articles: DBS 1Q26: From NIM pressure to fee-led growth, recovery takes hold

OCBC 1Q26: The earnings outlook is improving as non-interest income takes the lead

UOB 1Q26: The earnings base is stabilising, but stronger growth still requires better conditions

SG banks 1Q26: Non-interest income drives earnings resilience, supporting constructive outlook

Declaration:

For specific disclosure, at the time of publication of this report, IFPL (via its connected and associated entities) and the analyst who produced this report hold a NIL position in the abovementioned securities.

This research report was prepared with the assistance of artificial intelligence (AI) tools. iFAST Financial Pte Ltd does not rely exclusively on AI for content generation; the content of this report — including all investment theses, ratings, price targets and conclusions — has been independently reviewed and verified by the research analyst(s) to ensure accuracy and professional integrity.