Wealth Management Boom

The banks have benefited from Southeast Asia's growing millionaire population, which expanded by an estimated 8.2 percent in 2025 to reach 1.8 million individuals with investable assets exceeding $1 million, according to wealth consultancy estimates.

Indonesia added 12,400 new millionaires, Vietnam 8,600, and the Philippines 5,200—many of whom bank with Singapore-based wealth managers for portfolio diversification, estate planning, and access to global investment products not available in home markets.

Private banking revenues at the three Singapore banks grew an estimated 15-18 percent in 2025, outpacing traditional lending margins compressed by competition and rate cuts.

Trade Finance Strength

Singapore's position as Southeast Asia's trade finance hub has amplified bank earnings as intra-ASEAN trade reached $735 billion in 2025, up 6.8 percent from the prior year. Letters of credit, documentary collections, and supply chain financing generate lucrative fee income.

The Regional Comprehensive Economic Partnership (RCEP), fully implemented in 2023, has boosted trade flows between ASEAN and China, Japan, South Korea, Australia, and New Zealand—with Singapore banks capturing a significant share of the financing.

Valuation Questions

DBS now trades at 1.4 times book value, OCBC at 1.3 times, and UOB at 1.2 times—premiums that assume continued regional growth and stable net interest margins.

Analysts caution that the valuations leave little room for disappointment if regional economies slow, loan growth stalls, or geopolitical tensions disrupt trade flows. Indonesia's pivot toward authoritarianism under President Prabowo could dampen foreign investment, while US-China trade tensions threaten supply chains that generate much of the banks' fee income.

Credit quality remains robust, with non-performing loan ratios below 1.5 percent at all three banks. But exposure to China's property sector and emerging questions about leverage in Vietnam's corporate sector present potential risks.

The STI's record high reflects confidence that Southeast Asia's 6.8 million square kilometers, 700 million people, and $3.9 trillion economy will continue integrating and growing—with Singapore's banks collecting a toll on every transaction.

Ten countries, one region—and for the three banks that finance much of its trade, lend to its corporations, and manage its wealth, that connectivity translates directly to record profits and record share prices.