Singapore banking sentiment slips in Q4 2025

Banking and insurance posted 55.7 whilst the wider business reading climbed to 53.4.

Singapore’s banking and insurance sector showed mixed sentiment in the latest Business Sentiment Index (BSI) for the fourth quarter (Q4 2025), with a slight decline despite remaining amongst the stronger-performing sectors.

The sector recorded a BSI of 55.7 in Q4 2025, down 2.1 points from 57.8 in Q3, according to the Singapore Business Federation’s (SBF) National Business Survey 2025 (Q4 Business Sentiments Edition).

This makes it one of the few sectors to post a decline during the quarter, even as overall business sentiment rose to 53.4.

Looking ahead, firms in banking and insurance expect conditions to remain largely stable. 

About 54% of respondents believe business conditions will stay the same over the next 12 months, whilst 23% expect improvement and another 23% anticipate a worsening environment.

This outlook is more balanced compared to the past year. In the previous 12 months, only 15% of firms reported worsening conditions, whilst 38% saw improvements, suggesting that growth momentum has softened.

Despite the dip, the sector still ranks amongst the top three in overall sentiment, alongside IT and related services and other financial activities. 

However, the latest figures indicate that optimism has moderated, with firms taking a more cautious view of the year ahead.