Singapore insurers and banks expect slower profits in 2026

Finance confidence slipped to 54.3 in Q4 2025, whilst the wider economy rose to 52.1

Insurers and banks in Singapore feel slightly pessimistic about their profitability in 2026, with an index score of 54.3 in the fourth quarter (Q4 2025), lower than the 58.0 in Q3 2025.

This follows earlier readings of 57.4 in Q2 2025 and 59.1 in Q1 2025, showing a steady easing in sentiment over the year.

According to the Singapore Business Federation “National Business Survey 2025 Q4 Business Sentiments,” index scores between 40 to 59 suggest a neutral sentiment, where businesses look to maintain operations with minimal changes or neutral about level of support provided.

Although the index remains above the neutral 50 level, the steady decline suggests weakening confidence in near-term profitability.

This contrasts with the overall business sentiment, where the profitability index rose to 52.1 in Q4 2025 from 48.5 in Q3 2025, indicating a general pickup in expectations across the economy.

Several sectors posted clear gains over the same period. IT and related services recorded one of the strongest rebounds, with its index rising sharply to 54.4 in Q4 2025 from 42.6 in Q3 2025, an increase of 11.8 points. 

Manufacturing also improved, climbing to 52.7 from 46.2, whilst hotels, restaurants and accommodation rose to 50.8 from 41.5, a gain of 9.3 points. Other service activities saw a notable increase to 59.5 from 48.6, and logistics and transportation edged up to 50.3 from 46.5.

Financial-related segments outside traditional banking also showed some resilience. 

Other financial and insurance activities rose slightly to 57.1 in Q4 2025 from 55.5 in Q3 2025, suggesting that the decline is more concentrated within core banking and insurance firms.

At the same time, some sectors remained weaker despite modest improvements. 

Retail trade increased to 44.1 from 39.7, and education edged up to 46.0 from 45.1, both still below the neutral level. 

Administrative and support services rose to 49.4 from 46.0 but also remained under 50.