Singapore's banking sector is likely to record a 6% on-year contraction in profit after tax and minority interest for 2025, due to declining net interest income, RHB Research's Singapore team says in a note. While the sector saw healthy levels of wealth fees in 3Q, driven by improved sentiment and solid net new money inflow,net interest margin remains under pressure, RHB notes. DBS and UOB's 2026 guidance suggests a modest backdrop from more possible Fed rate cuts. RHB, which remains neutral on the Singapore banking sector, has a buy rating on DBS and a neutral rating on Oversea-Chinese Banking Corp. and United Overseas Bank.