- September’s 3-month SORA was down 8bps m-o-m to 3.46%, the lowest since March 2023 and 13bps lower than the 3Q24 average. We expect the 3-month SORA to decline in tandem with the Fed Rate cuts. Singapore loans growth grew 2.7% y-o-y and at a 24-month high.
- 3Q24 Singapore bank earnings were above expectations. Earnings rose 11% y-o-y, supported by trading (+106%) and fee income (+16%) growth, while NII growth moderated to 1%. FY24e guidance is for NII to remain stable y-o-y with NIMs at the current levels of around 2-2.25% and loan growth of low-single digit. Fee income is expected to sustain earnings with the expectation of double-digit growth for FY24e.
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3-month SORA and 3-month HIBOR continue falling
- Singapore interest rates were down 8bps to 3.46% in October, the lowest since March 2023. Furthermore, October’s 3-month SORA fell by 26bps y-o-y and was 13bps lower than the 3Q24 3-month SORA average of 3.59% (2Q24: 3.66%). This is the largest y-o-y decline since Apr 2021. We expect the 3-month SORA to decline with the Fed Rates as rate cuts start to take effect.
- - Read this at SGinvestors.io -
Singapore loan growth at low-single-digit
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