- 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.
