Singapore Banking Monthly - Phillip Securities 2023-08-11: Dividends Jumped 39% With NIM Boost

Singapore Banking Monthly - Dividends Jumped 39% With NIM Boost

Singapore Banking Monthly - Phillip Securities Research | SGinvestors.ioDBS (SGX:D05) OVERSEA-CHINESE BANKING CORP (SGX:O39) UNITED OVERSEAS BANK LTD (SGX:U11)
  • July’s 3-month SORA was up 5bps m-o-m to 3.69% and 3-month HIBOR was up 26bps m-o-m to 5.10%.
  • 2Q23 SG bank earnings were slightly above expectations. PATMI rose 35%, supported by NII growth of 37% y-o-y. Guidance for FY23e NIMs (from 2.05- 2.20% to 2.10-2.20%) and loans growth (maintained at low to mid-single digit). Interim dividend jumped 39% y-o-y in 1H23.
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  • Maintain OVERWEIGHT. We remain positive on Singapore banks. Bank dividend yields are attractive at ~6.0% with upside surprise in dividends due to excess capital ratios and push towards higher ROEs. SGX is another major beneficiary of higher interest rates.

3M-SORA growth flattish; 3M-HIBOR rebounds in July

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  • Hong Kong interest rates continued to surge and reversed the decline from 1Q23. The 3-month HIBOR was up 26bps m-o-m to 5.10%, the highest the 3-month HIBOR has reached since Dec 2022’s 3-month HIBOR of 5.29%. July’s 3-month HIBOR improved by 324bps y-o-y and was 82bps higher than 2Q23 3-month HIBOR average of 4.28%.

Singapore Banks' 2Q23 Results Highlights

Continued NII and NIM growth boost earnings

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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 @

Glenn Thum Phillip Securities Research | 2023-08-11

More reports on banking & finance sector:
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