Singapore Banking Monthly - Phillip Securities 2023-02-06: Interest Rates Growth Plateau

Singapore Banking Monthly - Interest Rates Growth Plateau

Singapore Banking Monthly - Phillip Securities Research | SGinvestors.ioDBS GROUP HOLDINGS LTD (SGX:D05) OVERSEA-CHINESE BANKING CORP (SGX:O39) UNITED OVERSEAS BANK LTD (SGX:U11)
  • January’s 3-month SORA was down by 3bps m-o-m to 3.05%, the first decline since August 2021.
  • Singapore domestic loans dipped 0.30% y-o-y in December, below our estimates, while Hong Kong’s domestic loans declined 2.99% y-o-y in December. CASA balance dipped slightly to 20.4%.
  • Read this at SGinvestors.io -
  • UOB: S$1.59bn, and
  • OCBC: S$2.03bn.
  • We expect bank NIMs to rise another 34bps in 4Q22. Valuations for OCBC are the most attractive and could offer largest upside surprise from dividends.
  • Maintain OVERWEIGHT. We remain positive on banks. Bank dividend yields are attractive at 5% with possible upside surprise due to excess capital ratios and push towards higher ROEs. SGX is another major beneficiary of higher interest rates.
  • 3M-SORA and 3M-SIBOR growth flattens in January

    • Read this at SGinvestors.io -
    • The SORA m-o-m decrease was the first since August 2021 and came after 8 months of double-digit m-o-m growth, while the SIBOR m-o-m increase was 22bps lower than the previous month’s increase of 23bps.
    • January’s 3-month SORA improved by 285bps y-o-y and was 37bps higher than the 4Q22 3-month SORA average of 2.68%.
    • January’s 3-month SIBOR improved by 381bps y-o-y and was 29bps higher than 4Q22 3-month SIBOR average of 3.96%.

    Singapore loans growth declined in December

    • Read more at SGinvestors.io.




    Above is the excerpt from report by Phillip Securities Research.
    Clients of Phillip Capital may be the first to access the full report in PDF @ https://www.stocksbnb.com/.




    Glenn Thum Phillip Securities Research | https://www.stocksbnb.com/ 2023-02-06



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