Singapore Banks 4Q22 Results Preview - UOB Kay Hian 2023-01-26: Continued Double-Digit NIM Expansion

• DBS will be announcing its 4Q22 results on 13 February 2023, followed by UOB on 23 February 2023 and OCBC on 24 February 2023. See Earnings calendar of SGX listed companies.
• - Read this at SGinvestors.io -
• The pace of NIM expansion has moderated but remains significant at double-digit. DBS and OCBC grew net interest income by a hefty 53% and 49% y-o-y respectively. Asset quality remains benign.
• - Read this at SGinvestors.io -

Recovery in Europe and China.

• The US economy has decelerated with retail sales contracting 1.1% m-o-m in Dec 22 on a seasonally adjusted basis. Industrial production has declined with weakness in manufacturing. Home sales fell 18% in 2022, while housing starts and building permits remain soft.
• On the other hand, the outlook for the European economy has improved. Fiscal stimulus has limited the impact of higher energy prices on businesses and consumers. European countries have overcome the energy crisis due to a mild winter and efforts to curb usage.
• China has switched from zero-tolerance to living with COVID-19 as an endemic disease. The reopening of the Chinese economy and recent refocus on pro-growth policies would engender recovery in 2H23.

Attractive dividend payout draws investors to SG banks.

• Read more at SGinvestors.io.

Jonathan KOH CFA UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-01-26 SGinvestors.io

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