singapore shares of singapores top banks jumped in the leadup to their thirdquarter earnings release this week as the global economic recovery gains momentum ocbc and uob are scheduled to kick off thirdquarter earnings season for singaporelisted banks on wednesday while dbs is expected to report on friday dbs group holdings the largest of the three singaporelisted banks hit a fresh 52week high on thursday the stock has climbed 259 this year as of friday the other two banks overseachinese banking corp and united overseas bank have also inched closer to their 52week highs ocbc has gained around 173 this year while uob has risen 184 all three banks have beaten the benchmark straits times index which rose 125 so far this year banks have been among the strongest performing sectors in stock markets globally this year said geoff howie market strategist at the singapore exchange interest rate expectations have been a key driver of international bank stocks in 2021 howie said in a report in midoctober the yield for 10year us treasury rose over the last month as markets started pricing in more interest rate hikes than what the federal reserve has indicated it comes as a recovery in the us economy and disruptions to global supply chains push up inflation higher interest rates are generally good for the profit margins of banks rising rates also tend to point to a strengthening economy which may mean fewer loan defaults singapores central bank manages monetary policy through setting the exchange rate instead of interest rate as a result domestic interest rates are influenced by global rates the three singapore banks have reported improved earnings in the last few quarters as the global economy recovers from the covid19 pandemic analysts said the momentum will likely continue heres what analysts are expecting from the banks thirdquarter report cards according to estimates compiled by refinitiv as of monday as in the previous quarter we expect all banks to report robust earnings growth yoy on lower credit costs said david lum an analyst with brokerage daiwa capital markets credit costs refer to the amount of reserves that banks set aside in anticipation of loan losses like many banks globally the singapore lenders made those provisions last year when covid weighed down economic activity but the banks started winding down the provisions this year as the global economy bounced back lum said in an october report that wealth management could do well for the singapore banks but trading and marketrelated income might come under pressure in the third quarter in addition to earnings the exposure to greater china for singapore banks would also come under the spotlight following the financial troubles at chinese property developer evergrande a slowdown in chinese real estate has hurt chinas economy with growth coming in at a disappointing 49 in the third quarter compared to a year ago