- 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.
- - Read this at SGinvestors.io -
- 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
- - Read this at SGinvestors.io -
- 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
- Read more at SGinvestors.io.
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 @ https://www.stocksbnb.com/.
Glenn Thum Phillip Securities Research | https://www.stocksbnb.com/ 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)
