Softer rates are squeezing NIMs at the 3 Singapore banks, but also spurring excitement about the potential for valuations to rise and converge
[SINGAPORE] Back in November last year, right after the three Singapore banks reported their Q3 2025 financial results, this column opined that UOB would probably lag behind its peers for some time amid signs of deteriorating asset quality.
This bearish call is not ageing well. Last week, UOB surged 7.5 per cent – which made it the best performing constituent of the Straits Times Index (STI) by a long way. The second biggest gainer for the week was CapitaLand Investment (up 4.5 per cent), while the third biggest was Thai Beverage (up 4.4 per cent).
The market seems to be quickly shrugging off the big increase in general allowances for non-performing assets (NPAs) that crushed UOB’s Q3 2025 earnings. Since UOB reported those shockingly weak numbers two months ago, its shares are up 13.3 per cent.
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