Singapore Banking Monthly - Phillip Securities 2024-06-06: Interest Rates Inch Up

Singapore Banking Monthly - Interest Rates Inch Up

Singapore Banking Sector - Phillip Securities Research  | SGinvestors.ioDBS (SGX:D05) OVERSEA-CHINESE BANKING CORP (SGX:O39) UNITED OVERSEAS BANK LTD (SGX:U11)
  • Banks continued their positive performance in May. The best performer continued to be DBS, with a 3% increase, while OCBC and UOB improved by 2% and 1%, respectively.
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  • Singapore domestic loans inched up 1.5% y-o-y in April, the largest y-o-y increase since October 2022. We expect low-single-digit growth for 2024 as loan growth is expected to continue to be positive going into 2H24. The CASA balance was maintained at 18.3% (Mar24: 18.3%).
  • Maintain OVERWEIGHT. We remain positive on banks. NIMs may stay flat despite the higher-for-longer interest rate environment. A recovery in loan growth and fee income will lift profits. Bank dividend yields are attractive at 6.1%, with upside surprises due to excess capital ratios and a push towards higher ROEs.

3-month SORA & 3-month HIBOR tick up in May

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  • Hong Kong interest rates recovered slightly in May. The 3-month HIBOR was up 13bps m-o-m to 4.67%, slightly reversing the decline of 16bps in April. May’s 3-month HIBOR improved by 26bps y-o-y but was 6bps lower than 1Q24 3-month HIBOR average of 4.73%

Singapore loan growth positive, largest since Oct 2022

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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 | 2024-06-06

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)


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