- April’s 3M-SORA was up 25bps m-o-m to 3.60%, 3M-HIBOR was down 21bps m-o-m to 3.59%. HIBOR is down 170bps this year.
- 1Q23 bank earnings were modestly above expectations. PATMI rose 50%, supported by NII growth of 50% y-o-y. Provisions were higher but credit cost still at their lows of 18bps. Guidance for FY23e NIMs (from 2.1-2.25% to 2.05- 2.2%) and loans growth (from mid-single digit to low to mid-single digit).
- - Read this at SGinvestors.io -
- Maintain OVERWEIGHT. We remain positive on Singapore banks. Bank dividend yields are attractive at 5.7% with upside surprise in dividends due to excess capital ratios and push towards higher ROEs. Singapore Exchange (SGX:S68) is another major beneficiary of higher interest rates.
3M-SORA continues to climb; 3M-HIBOR dips in April
- - Read this at SGinvestors.io -
- Hong Kong interest rates declined and reversed the increase from the previous month. The 3M-HIBOR was down 21bps m-o-m to 3.59%, the m-o-m decline was a reversal of the m-o-m increase of 25bps in March 2023. April’s 3M-HIBOR improved by 304bps y-o-y and was 23bps lower than 1Q23 3M-HIBOR average of 3.82bps.
Singapore banks' 1Q23 results highlights
NII and NIM continue to surge y-o-y, but stagnate m-o-m
- 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/ 2023-05-12
More reports on banking & finance sector:
Analyst Reports on Singapore Banking & Finance Sector
Read also:
Analyst Reports on DBS Group
Analyst Reports on OCBC Bank
Analyst Reports on United Overseas Bank (UOB)
