UOB led the charge, marking its fifth consecutive record intraday high by climbing 4.65% to 43.63 Singapore dollars. DBS shares rose 1.5% to 69.67 Singapore dollars, while OCBC gained 2.9% to reach 27.10 Singapore dollars. These institutions, which account for half of the Straits Times Index weighting, are benefiting from a shift in market sentiment toward growth in both net interest and non-interest income.

Macquarie analysts upgraded DBS and UOB to outperform, citing potential for further re-rating. They raised their target price for DBS to 70.86 Singapore dollars and UOB to 45.16 Singapore dollars. Citi also bolstered the sector's momentum, lifting price targets across all three lenders based on projected loan growth recovery through 2028. While some investors remain cautious regarding net interest margins, market strategists like Tiger Brokers' James Ooi point to strong wealth management performance and rising fee income as critical buffers, even if interest rates remain suppressed.