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Singapore’s largest bank, DBS, led the charge with a net profit of SGD 2.24 billion, representing a 32% year-on-year increase. Closely following was OCBC, which posted a profit of SGD 1.6 billion—a 31% rise—while UOB registered SGD 1.4 billion, up 34%. These substantial gains were largely attributable to aggressive rate hikes by the U.S. Federal Reserve, aimed at curbing inflation in the United States.
The rate hikes elevated the banks’ net interest margins (NIM), which is a measure of earnings derived from interest on loans relative to interest paid on deposits. As interest rates surged, banks were able to earn more from their lending activities, bolstering their profitability.