DBS, OCBC, and UOB anchor a resilient sector with strong capital buffers, per MAS data.

6.8% CAGR in Total Assets Confirmed by MAS

The Monetary Authority of Singapore (MAS) confirmed that the banking sector's total assets grew at a compound annual rate of 6.8% over 2021–2024, driven by the dominant positions of DBS, OCBC, and UOB. The figure was disclosed by MAS deputy managing director for markets and development Leong Sing Chiong in remarks accompanying the central bank's Annual Report 2024/2025, released on July 15, 2025. The growth in banking assets outpaced the broader financial services sector, which averaged 4.7% growth per annum over the same period, keeping the industry on track to meet its Industry Transformation Map (ITM) 2025 target of 4% to 5% per annum over 2021–2025.

The financial services sector as a whole grew 6.8% in 2024, more than doubling the 3.1% growth recorded in 2023, and accounted for approximately 14% of Singapore's gross domestic product, according to Deputy Prime Minister and MAS chairman Gan Kim Yong. Growth was broad-based across segments including banking, fund management, and insurance. The insurance industry's total assets increased by 3.6% in 2024 over 2023, reaching S$456.4 billion, while Singapore continued to expand as a leading foreign exchange hub, with average daily traded volumes surpassing S$1.5 trillion in 2024.

Despite these strong figures, MAS has cautioned that the pace of growth seen in recent years is unlikely to persist, as the industry braces for slower global economic expansion amid tariff uncertainties. The banking sector's resilience during the period was notable, with total assets growing steadily through a period of elevated interest rates, geopolitical tensions, and post-pandemic normalization.

CAGR (%) (%)Source: Orionmano Industries

Big Three Local Banks Control Majority of Sector Assets

Singapore's banking sector is heavily concentrated around three flagship institutions: DBS Group Holdings, Oversea-Chinese Banking Corporation (OCBC), and United Overseas Bank (UOB). These three banks—each tracing its roots to the nation-building era—are treated by the ASEAN+3 Macroeconomic Research Office (AMRO) as the major local banks, with nearly 75% of their foreign lending directed to ASEAN+3 entities. DBS, in particular, has evolved into Southeast Asia's largest bank by assets, according to industry analysis.

The three banks generated record net profits in 2024. DBS reported total income of S$22.3 billion and net profit of S$11.41 billion, an 11% increase year-on-year, with a return on equity of 18%—among the highest for developed-market lenders. The bank's digitalization strategy remains a key driver: more than 1,500 AI models now run across 370 use cases, generating insights that lifted wealth-management fee income by 45% in 2024. DBS management raised the quarterly ordinary dividend to 60 cents and, citing surplus capital exceeding regulatory needs, introduced a capital-return dividend of 15 cents per quarter for 2025 through 2027, alongside a separate S$3 billion share buyback programme initiated in November 2024.

All three banks derive a significant portion of their income beyond Singapore's shores, with regional exposure concentrated in ASEAN+3 markets. AMRO's analysis notes that the Singapore banking system is highly integrated with the global financial system—the share of external assets and liabilities in the banking sector exceeds 50%—and the major local banks act as key providers of banking services to the region. Foreign currency loans and deposits account for approximately 54% and 55% of all banking sector loans and deposits respectively, with the US dollar being the most dominant foreign currency, representing about 30% of the total.

Capital and Liquidity Buffers Remain Robust

The strong asset growth has been underpinned by robust capital positions across the local banking groups. According to MAS's Financial Stability Review 2024, the aggregate common equity tier 1 (CET1) capital adequacy ratio for local banking groups stood at 16.7% as of Q3 2024, well above the regulatory minimum. This strong capital buffer is supplemented by ample provisioning: the non-performing loan (NPL) coverage ratio for local banking groups reached 252% as of Q3 2024, up from 111.1% for the overall banking system during the same period the year before.

The banking system's funding structure remains healthy, with stable non-bank deposits comprising more than 80% of total banking system funding as of September 2024. Deposits registered robust growth over the past year, largely driven by higher deposits from individuals, supporting the banking sector's capacity to supply credit to the economy. Liquidity positions remain strong, with domestic systemically important banks (D-SIBs) maintaining liquidity buffers well above all-currency and Singapore dollar minimum Liquidity Coverage Ratio requirements, and Net Stable Funding Ratios also above regulatory thresholds.

The results of MAS's Industry-Wide Stress Test 2024 affirmed that banks in Singapore have adequate capital buffers to weather potential downside risks. The robust earnings performance in 2024—driven by both net interest income and non-interest income rising—has continued to underpin these strong capital positions. MAS's Financial Stability Review notes that these buffers, supplemented by ample provisions, ensure that local banking groups are well placed to withstand any deterioration in credit conditions.

Outlook: Headwinds Ahead but Strong Foundations

Looking ahead, the sector faces headwinds from slower global growth and tariff uncertainties, factors that MAS has explicitly flagged. Interest-rate cuts are on the horizon, though the shift is likely to be gradual, and net-interest margins may normalize from 2024 highs. However, healthy fee momentum in wealth management, cards, and treasury services continues to support revenue across the three major banks.

The strong capital positions, consistent profitability, and shareholder-friendly policies of DBS, OCBC, and UOB suggest they are well-positioned to navigate shifting interest-rate cycles and broader macroeconomic changes. Their regional diversification, digital investments, and disciplined cost control provide a buffer against near-term uncertainties. While the pace of asset expansion may moderate from the 6.8% CAGR recorded over 2021–2024, the sector's underlying resilience—anchored by dominant local banks with robust capital buffers—should support continued, albeit possibly slower, growth in total assets.