Singapore banks lean on wealth and higher global yields to revive growth

Elevated US rates will let banks deploy excess capital into higher-yielding assets, CGSI says.

Singapore banks have the potential to see stronger net interest income (NII) growth in FY2027 thanks to higher US interest rates.

Higher US interest rates could present the banks with opportunities to deploy excess capital into higher-yielding instruments, which in turn can help to support NII growth in FY2027F, according to CGS International (CGSI).

“We believe the sector will experience ROE (return on equity) expansion driven by NII growth due to the aforementioned factors as well as ongoing structural growth of the wealth management business within Singapore across the banks,” CGSI analysts Tay Wee Kuang and Tan Jie Hui wrote in a June 2026 report.

Singapore’s three biggest banks are said to be increasingly relying on wealth management to support income growth as falling interest margins pressure their traditional lending businesses.

Deposits grew 7.3% year-on-year (YoY) in April, and 0.21% compared to the previous month, according to data from the Monetary Authority of Singapore (MAS).

Continued liquidity flows through deposits, meanwhile, supported resilient NII, which declined 0.9% to 3.2% across the banks in Q1 2026, CGSI said.

Asset yields could also improve with the re-acceleration of loan growth in April, CGSI said. Singapore banks’ loans grew 8% YoY during the month.

Follow the link for more news on

Monetary Authority of Singapore

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia