DBS, UOB, and OCBC have all published their business updates for the 1st quarter of FY2026, which ended on 31 March.

I’ve previously shared my reviews of their latest financial results and key ratios as each update was released. If you missed them, you can catch up through the links below:

So, among the 3 banks, which showed the strongest improvement in financial performance and key ratios? And which is the ‘cheapest’ versus the ‘most expensive’ based on their valuations as of market close on 08 May 2026?

Let us find out in this post:

Financial Results Comparison: 1Q FY2025 vs. 1Q FY2026

Net Interest Income:

DBSUOBOCBC
Net Interest
Income		Down -5.1%

1Q FY2025:
S$3,681m

1Q FY2026:
S$3,494m		Down -3.5%

1Q FY2025:
S$2,409m

1Q FY2026:
S$2,324m		Down -5.2%

1Q FY2025:
S$2,345m

1Q FY2026:
S$2,222m


Given the current low interest rate environment, it’s no surprise that net interest income for all 3 banks continued to decline.

That said, UOB saw the smallest drop, with net interest income falling just 3.5%, followed by DBS at 5.1%, and OCBC at 5.2%.

Net Fee & Commission Income:

DBSUOBOCBC
Net Fee &
Commission
Income		Up +16.2%

1Q FY2025:
S$1,275m

1Q FY2026:
S$1,482m		Down -8.2%

1Q FY2025:
S$694m

1Q FY2026:
S$637m		Up +23.6%

1Q FY2025:
S$546m

1Q FY2026:
S$675m


UOB was the only bank to record a decline in net fee and commission income, largely due to weaker contributions from investment banking and loan-related activities.

Both DBS and OCBC, on the other hand, recorded year-on-year growth. OCBC’s increase was particularly strong, rising 23.6% (mainly driven by a 34% surge in wealth management fees), while DBS grew 16.2%.

Other Non-Interest Income:

DBSUOBOCBC
Other
Non-Interest
Income		Up +2.4%

1Q FY2025:
S$949m

1Q FY2026:
S$972m		Down -16.6%

1Q FY2025:
S$554m

1Q FY2026:
S$462m		Up +21.9%

1Q FY2025:
S$764m

1Q FY2026:
S$931m


UOB was once again the only bank to see a decline in other non-interest income, largely due to weaker trading and investment returns.

Among the other 2 banks, OCBC recorded the strongest growth in this segment, rising 21.9% (driven by higher net trading income and gains from life and general insurance), while DBS saw only a modest 2.4% increase.

Net Profit Attributable to Shareholders:

DBSUOBOCBC
Net Profit
Attributable
to Shareholders		Up +1.1%

1Q FY2025:
S$2,897m

1Q FY2026:
S$2,930m		Down -3.6%

1Q FY2025:
S$1,490m

1Q FY2026:
S$1,437m		Up +4.8%

1Q FY2025:
S$1,883m

1Q FY2026:
S$1,974m


UOB was once again the only bank to report a year-on-year decline, this time in net profit attributable to shareholders.

Between DBS and OCBC, OCBC posted the stronger performance, with net profit rising 4.8%, compared to DBS’ 1.1% increase.

Key Financial Ratios Comparison: 4Q FY2025 vs. 1Q FY2026

Net Interest Margin:

DBSUOBOCBC
Net Interest
Margin		Down -0.04pp

4Q FY2025:
1.93%

1Q FY2026:
1.89%		Down -0.02pp

4Q FY2025:
1.84%

1Q FY2026:
1.82%		Down -0.1pp

4Q FY2025:
1.86%

1Q FY2026:
1.76%


All 3 banks saw declines in their net interest margin, but UOB’s drop was the smallest at just 0.02pp, compared with 0.04pp for DBS and 0.10pp for OCBC.

Despite this, DBS maintained the highest net interest margin, at 1.89%.

Return on Equity:

DBSUOBOCBC
Return on
Equity		Up +3.5pp

4Q FY2025:
13.5%

1Q FY2026:
17.0%		Down -0.2pp

4Q FY2025:
11.7%

1Q FY2026:
11.5%		Up +1.4pp

4Q FY2025:
11.6%

1Q FY2026:
13.0%


Both DBS and OCBC saw quarter-on-quarter improvements in their return on equity, but DBS not only posted a higher increase (+3.5 percentage points) but also maintained the highest return on equity among the three banks, at 17.0%.

Non-Performing Loans Ratio:

DBSUOBOCBC
Non-
Performing
Loans Ratio		No Change

4Q FY2025:
1.0%

1Q FY2026:
1.0%		No Change

4Q FY2025:
1.5%

1Q FY2026:
1.5%		No Change

4Q FY2025:
0.9%

1Q FY2026:
0.9%


The non-performing loans ratios for all 3 banks remained steady from the previous quarter. Among them, OCBC reported the lowest ratio at 0.9%, followed by DBS at 1.0%, and UOB at 1.5%.

Which Bank Came Out on Top for 1Q FY2026?

OCBC clearly stood out this quarter, posting the strongest percentage gains in net fee and commission income, other non-interest income, and net profit attributable to shareholders. 

In addition, it also recorded the lowest non-performing loans ratio among the 3 banks.

Valuation Comparison (Based on Market Close on 08 May 2026)

DBSUOBOCBC
Share PriceS$58.68S$36.56S$21.92
P/E Ratio15.3513.1913.42
P/B Ratio2.411.161.57
Dividend Yield ^^5.21%4.95%4.52%

^^ – The dividend yields for the 3 banks are calculated using their total FY2025 dividend payouts, including any special dividends: S$3.06 per share for DBS, S$1.81 per share for UOB, and S$0.99 per share for OCBC.

Given DBS’ consistent growth in financial performance every single quarter, it comes as little surprise that the bank continue to remain the ‘most expensive’ among the trio, with the highest P/E and P/B ratios.

On the other hand, UOB continues to be the ‘cheapest’ of the 3 banks, as it trades at the lowest P/E and P/B ratios.

Closing Thoughts

OCBC’s 1Q FY2026 results were particularly impressive, with double-digit growth in both net fee and commission income and other non-interest income – pushing the bank’s total non-interest income to a record high. Its total income also reached a new peak.

DBS delivered equally strong results, with both total income and profit before tax hitting record levels.

What makes these achievements even more noteworthy is that both banks managed this amid ongoing geopolitical uncertainty.

Looking at the latest quarterly figures and ratios for all 3 banks, this marks the second consecutive quarter that OCBC leads in terms of percentage improvements – a commendable feat, as it has not only closed the gap with DBS but even surpassed it.

On valuations, DBS remains the ‘most expensive’, reflecting its long-term resilience. Conversely, with weaker financial performance over successive quarters, UOB’s valuation is understandably the ‘cheapest’ among the 3.

Disclaimer: At the time of writing, I am a shareholder of DBS, UOB, and OCBC. 

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