We hosted DBS (SGX:D05) in our regional financials conference held during 6-7 Dec 2023. With the Fed fund rate outlook still being rather uncertain, DBS reiterates its view that there is an inverse relationship between NIMs and growth.
DBS expects stable NII y-o-y in FY24F
- Read this at SGinvestors.io -
According to DBS, there is about S$10bn of loans will be repriced in 4Q23F, ~S$40bn in FY24F, and ~S$50bn from FY25F onwards.
- Read this at SGinvestors.io -
Balancing growth and margins
DBS thinks loan growth could total ~2-3% in FY24F as the rate of repayments from customers remain high given the elevated interest rates.
We note that the bank had conscientiously allowed some trade loan volumes to run off in 3Q23 as margins ran thinner given the aggressive competition amongst peers, impeding on ROE.
In essence, competitive dynamics amid the uncertain macroeconomic environment makes a more precise loan growth outlook for FY24F a tough call at this juncture, in our view. Stronger loan growth amid Fed rate cuts are an upside risk.
Citi Taiwan will aid its business in scaling up
Read more at SGinvestors.io.
Above is the excerpt from research report by CGS-CIMB. Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.
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