- We continue to have HOLD calls on both OCBC (SGX:O39) and UOB (SGX:U11) as we anticipate limited room for rerating with earnings growth slowing to ~1%.
- - Read this at SGinvestors.io -
- - Read this at SGinvestors.io -
Net Interest Income
Markets continue to price in higher-for-longer interest rates.
- Having delivered 525bps of rate hikes this cycle (taking the rate to 5.50%), DBS Group Research believes that the Fed has the capacity to adopt a prolonged hold stance. As such, we have pencilled in four rate cuts in 2H24F. While there is a slight upside risk indicated by the Fed’s dotplot projecting a 5.75%, DBS Group Research believes the hurdle for another hike might be high.
- Any further rate increases would require incoming data to surpass expectations and provide positive surprises.
NIMs have likely peaked, expecting continued pressure on NIMs.
- Read more at SGinvestors.io.
Above is the excerpt from report by DBS Group Research.
Clients of DBS may access the full report in PDF @ https://www.dbs.com/insightsdirect/.
Rui Wen LIM DBS Group Research | https://www.dbs.com/insightsdirect/ 2023-12-04
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)
